Main Takeaways:
- The U.S. government is directing the vast $10–13 trillion Eurodollar pool into a U.S.-regulated stablecoin ecosystem to regain fiscal control.
- Stablecoin issuers’ bond-buying creates a steady demand for U.S. Treasuries, enabling Treasury Secretary Benson to influence short-term interest rates outside the Fed.
- DeFi platforms like Ethena, Hyperliquid, Ether.Fi, and Codex stand to benefit from massive capital inflows enabled by a projected $10 trillion stablecoin supply and 2 % Fed funds rate.
- The bull market could last until 2028, buoyed by stablecoin-driven liquidity and decentralized finance growth.
- Global South demand via platforms like Facebook and X offering dollar accounts may usher in an additional $4 trillion flowing into U.S. Treasuries, weakening national monetary control.
- Hayes characterizes this structural shift as a “once-in-a-century” opportunity, comparable to Rockefeller-era transformation.
Government Strategy: Steering the Eurodollar into Stablecoins
At the WebX 2025 conference, Arthur Hayes explained that the U.S. government aims to channel the enormous $10–13 trillion Eurodollar market toward a controllable stablecoin ecosystem managed within the U.S. banking system. By doing this, stablecoin issuers will buy U.S. Treasuries with the deposits they receive, which will help the Treasury exert influence over short-term interest rates—sidestepping the Federal Reserve.
Stablecoins as Treasury Buyers & DeFi’s Liquidity Surge
Hayes forecasts that stablecoin issuance will swell to $10 trillion while the federal funds rate could fall to around 2 %. This combination could unleash unprecedented liquidity into DeFi, especially benefiting platforms such as Ethena, Hyperliquid, Ether.Fi, and Codex, creating new financial services and yield opportunities previously unavailable in traditional finance.
(Insert chart here illustrating stablecoin supply vs. interest rate vs. DeFi inflows.)
Prolonged Bull Market Through 2028
Hayes predicts that this bull market will continue until at least 2028. As stablecoin-driven liquidity grows and DeFi attracts more capital, funds are expected to shift away from centralized exchanges, reinforcing bullish momentum across crypto assets.
Global South & Social Platforms Fuel Dollar Demand
He also noted that in the Global South, platforms like Facebook and X are preparing to offer U.S. dollar-denominated accounts, potentially generating up to $4 trillion in new demand for Treasuries. This flow could undermine local monetary policies and strengthen the dollar’s global role.
A Once-in-a-Century Financial Transformation
Hayes dubbed this unfolding shift as a “once-in-a-century market opportunity,” comparable to the Rockefeller-era structural changes. He advised investors to shift their focus to decentralized platforms and the expanding stablecoin-based financial services ecosystem.
Conclusion
In summary, Arthur Hayes’s analysis from WebX 2025 lays out a compelling scenario: the U.S. stabilizes its fiscal footing by redirecting Eurodollar liquidity into a stablecoin-anchored monetary apparatus, driving DeFi growth, and sustaining a prolonged crypto bull market through 2028. For investors and Web3 professionals, the message is clear—watch for investments flowing into decentralized platforms, DeFi yield strategies, and the broader financial infrastructure enabled by stablecoins.
