State Street Global Chief Warns: US Dollar Assets Are Losing Their Shine
The dollar's dominance is cracking—and Wall Street's biggest players are taking notice.
State Street's global chief just dropped a truth bomb: Traditional USD-based investments aren't cutting it anymore. While he didn't specify exact numbers, the implication is clear—institutional money is eyeing the exits.
The great dollar pivot
For decades, the greenback was the default safe haven. Now? Even conservative asset managers are questioning its staying power. No surprise—when your currency's backed by IOUs and political theater, alternatives start looking attractive.
Enter digital gold
This isn't just about inflation or rates. It's structural. Bitcoin's fixed supply and decentralized nature make it the ultimate hedge against fiat uncertainty. Meanwhile, 'pristine' US Treasuries? About as exciting as watching a Fed press conference on loop.
The message to investors: Adapt or get left holding bags of depreciating paper. The smart money's already moving—where's yours?
Are Tariffs A Blow To The USD?
According to a CoreData survey conducted in May-June of this year, investors are reducing their exposure to the US. The data was collected from financial institutions that manage $4.9 trillion worth of assets. The survey found that 47% of respondents were strategically reducing their long-term investments in the US market. The development may lead to a substantial concern for the US dollar’s position. It may also lead to further global de-dollarization.
Thierry Wizman, global FX and rates strategist at Macquarie Group, also shares a similar concern. Wizman says that the US dollar’s role as the global reserve currency could be questioned as the country forfeits the role of free trade facilitator.
The US recently approved a tax and spending bill that will add trillions to the government’s debt. The MOVE could worsen longstanding deficit concerns.
More Diversification And De-Dollarization Ahead?
A recent report by BlackRock found that central banks are moving their assets away from the US dollar. The report stated, ““
According to former Bank of Japan Deputy Governor Hiroshi Nakaso, the US dollar will remain the supreme global currency. Despite his pro-USD remark, Nakaso highlighted that there are cracks in the USD’s status.
These cracks have been highlighted by many industry experts and economists. While it will be extremely difficult to find an alternative to the US dollar-based global trade system, it WOULD appear that many countries are already making moves to de-dollarize as quickly as possible.
