The co-founder and former CEO of BitMEX, Arthur Hayes, recently wrote on his blog that a wave of stablecoin adoption by big U.S. banks will drive a sharp increase in the value of both Bitcoin and JPMorgan shares.
According to Hayes, the driving force behind this shift is U.S. Treasury Secretary Scott Bessent’s alleged plan to inject liquidity into the economy. Not through traditional Federal Reserve mechanisms, but via financial innovation and regulatory reform.
Hayes characterized the move as a “stealth liquidity injection” that mirrors past quantitative easing programs, but without overt money printing.
Bessent is done getting fluffed. It’s time for him to soak the world with his liquidity juices, Hayes wrote in his characteristically provocative style.
JPMorgan’s Stablecoin Strategy
Hayes identified JPMorgan’s stablecoin, JPMD, as a central player in this new liquidity model. The coin enables the bank to tokenize client deposits, reduce compliance costs, and earn a risk-free spread by investing in U.S. Treasury bills.
By issuing stablecoins, Hayes said, JPMorgan could unlock up to $6.8 trillion in Treasury bill purchasing power. He argued that even a partial conversion of JPMorgan’s deposits into JPMD could yield hundreds of billions in low-risk, high-margin earnings, potentially doubling or tripling the bank’s market capitalization.
The adoption of stablecoins by TBTF [Too Big to Fail] banks creates up to $6.8 trillion of T-bill buying power, he added.
Regulatory Tailwinds
Hayes also pointed to the proposed GENIUS Act, which he claims could hand large banks a near-monopoly over stablecoin issuance. Such regulation would marginalize fintech firms like Circle, which currently operates the USDC stablecoin.
“The real stablecoin play isn’t betting on crusty FinTechs like Circle—it’s understanding that the US government just handed TBTF banks the launch keys to a multi-trillion-dollar liquidity bazooka disguised as ‘innovation’,” Hayes wrote.
According to Hayes, include increased demand for U.S. Treasuries without the need for new rounds of quantitative easing. This could suppress yields and reflate risk assets—conditions historically favorable for Bitcoin.
Hayes emphasized that Bitcoin thrives during periods of expanding liquidity and falling interest rates. He argued that this new stablecoin-fueled financial architecture would be highly bullish for the leading cryptocurrency.
Meanwhile, Ethereum may also benefit. JPMD is expected to operate on Base, a layer-2 blockchain developed by Coinbase and built atop Ethereum. As a result, Ethereum would serve as the underlying settlement layer for a potentially massive flow of stablecoin transactions.This is debt monetization dressed in Ethereum drag, Hayes quipped
Analysts further noted that Ethereum’s staking yield could make it attractive for corporate treasuries—potentially sparking a new wave of institutional demand.
Hayes’ prediction indicates a fundamental shift in how liquidity is managed in the U.S. financial system.
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