Knowledge popularization, why is the U.S. desperately supporting stablecoins? How wild is this game?
Because this is a carnival of "legal arbitrage"—U.S. companies use U.S. Treasury bonds as a foundation to issue stablecoins, earning interest on Treasury bonds with one hand, collecting minting fees with the other, and revitalizing the dead money they hold. And the U.S. government is even happier: previously relying on foreign central banks to take over U.S. Treasury bonds, now countries are throwing away U.S. Treasury bonds to hoard gold, what to do? Let companies and big players step in!
Banks? Outdated. In the past, companies deposited money in banks, which then bought U.S. Treasury bonds, all while worrying about "Silicon Valley Bank-style explosions." Now companies issue coins directly themselves, bypassing banks, using Treasury bonds as collateral, and making guaranteed profits. Banks are sidelined, companies effectively acquire "private money printing rights," and this operation has taken financial games to a new height.
For companies, this business is too appealing. Think about Amazon and Walmart's gift cards—essentially "private dollars," just without interest. And stablecoins? Not only can they earn U.S. Treasury bond yields, but they can also be thrown into DeFi for high APY, maximizing liquidity, and regulation is hard to enforce. Users are also happy to hold coins, after all, the interest rates are much better than banks. As companies play bigger, the dollars in the market are sucked in and exchanged for U.S. Treasury bonds; inflation is suppressed, Treasury bonds have buyers, and interest rates can go down, achieving three goals with one arrow.
Advice for crypto veterans?
1. Keep an eye on compliant players—U.S. darlings (USDC, PAX) are steadier than wild routes, with lower explosion probabilities;
2. Don’t hesitate to arbitrage—combining corporate stablecoins and DeFi to earn interest spreads is better than simply hoarding;
3. Beware of policy changes—now the government turns a blind eye, but when they run out of money, they might directly cut off companies, leading to a market crash.
This game is the U.S. using companies as white gloves to extend the life of the dollar hegemony. If it works, everyone wins; if it fails? Sorry, retail investors are always the fuel.
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