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Former BitMEX CEO Arthur Hayes believes stablecoins could help rescue the US Treasury as it struggles to fund over $5 trillion in bond sales this year. In a July 3 post Hayes said Treasury Secretary Scott Bessent faces a nearly impossible task of selling debt while keeping the 10-year yield below 5% and without Fed support
Stablecoins may offer a lifeline. Hayes pointed to JP Morgan’s JPMD token on Coinbase’s Base network as a sign of change. He predicts banks could transform deposits into stablecoins cutting $20 billion in compliance costs and recycling trillions into Treasury bills. Tokenized deposits could unlock $6.8 trillion in demand for T-bills Hayes estimated
Data shows T-bills now yield around 5.3% while bank reserves pay roughly 5.4% Hayes argues that tokenized dollars will shift idle cash into Treasuries acting like stealth quantitative easing. That new liquidity could support Bitcoin and other risk assets Hayes says even if there is a brief slowdown after debt ceiling talks
