The wait is over. On May 7, 2025, the U.S. Treasury officially confirmed that long-anticipated trade negotiations with China will begin this Saturday. While no major breakthroughs are expected, these talks mark the first step in what could become one of the most consequential economic dialogues of the decade.
U.S. Treasury Secretary Janet Yellen clarified that these are “initial” discussions rather than high-level negotiations. Still, the message is clear: Washington wants Beijing to abandon its long-held “developing nation” status—a designation that has shielded China from stricter global trade responsibilities for years.
But beyond the political stage, a more profound financial shift is quietly underway.
Crypto protocols are reportedly preparing to move up to $2 trillion into U.S. Treasuries.
Yes, you read that right. New data reveals that demand for U.S. government bonds from decentralized crypto organizations could surge, as digital asset firms seek stable yield amid growing regulatory uncertainty and on-chain market volatility. What was once a meme—DAOs buying bonds—is fast becoming mainstream macro strategy.
Why Treasuries? Because in times of trade friction and rising tariffs, yield stability outweighs speculative pumps. Tokenized Treasury Bills are rapidly emerging as the go-to “risk-off” asset for DeFi treasuries and protocol reserves.
This trend could fundamentally alter capital flows. As the U.S. and China hash out the next era of global rules, the crypto economy is already responding—redirecting capital away from volatility and toward real-world yield.
The real question isn’t just what the U.S. and China will decide—but how crypto-native capital will continue to react.
