Arthur Hayes Proposes Big Bank Stablecoins Could Channel $6.8 Trillion into US Treasuries
Arthur Hayes, in a provocative essay, outlines a radical plan where too-big-to-fail banks could issue blockchain-based stablecoins to mobilize dormant deposits for US Treasury purchases. The former BitMEX CEO suggests this mechanism WOULD allow the new Treasury Secretary, Scott Bessent—derisively nicknamed "The Big Scott C*ck"—to fund government debt without triggering yield spikes.
The proposal hinges on converting $6.8 trillion in idle bank deposits into zero-duration Treasury buyers through bank-issued stablecoins. Hayes speculates institutions like JPMorgan would launch tokens such as JPMD on public blockchains, effectively creating a new liquidity pipeline for government borrowing at a time when traditional tools like quantitative easing are exhausted.
