Brothers, do you feel it? This market wave is like a game of chess—The Federal Reserve suddenly pushes the 'stablecoin' pawn onto the board, and nobody expected it to become the future's 'rook'. Remember, this is a critical piece for the survival of dollar hegemony! The question now is: will this chess game propel the cryptocurrency circle to a new peak, or will it lay the groundwork for an even bigger bubble?

A major shift in attitude, the truth behind the scenes is revealed.
Just this Wednesday, Federal Reserve Governor Waller sent a strong signal at a blockchain summit in Wyoming: 'This is why the Federal Reserve must continue to embrace technological advancement, modernize its services, and support private sector innovation.'
Waller emphasized that if decentralized finance can effectively control risks in the payment system, it could become a significant driver of improved payment efficiency. This statement is no coincidence!
In recent months, the Federal Reserve has gradually withdrawn its special regulation of banks involved in cryptocurrency businesses and eliminated the 'reputation risk' classification from bank reviews.
In April of this year, the Federal Reserve also withdrew previous guidance discouraging banks from participating in cryptocurrency and stablecoin businesses. This shift indicates that the U.S. is fully committed to embedding dollar hegemony into the digital currency era as a national strategy.
The GENIUS Act ignites the industry, compliant stablecoins welcome an explosion.
On July 18, the GENIUS Act signed by Trump became a milestone event in the digital asset field. This act requires stablecoins to be 100% backed by cash, short-term Treasury bonds, or other highly liquid assets, establishing the first comprehensive federal regulatory framework for stablecoins.
The latest report from U.S. banks predicts that this regulatory transparency will drive stablecoin supply to surge by $25 billion to $75 billion within a year. Traditional financial institutions can no longer avoid the trend of positioning themselves in stablecoins.
The U.S. Treasury directly intervenes, making the cryptocurrency circle a savior for Treasury bonds.
The most explosive insider news is: U.S. Treasury Secretary Becerra is pushing for the crypto industry to become a key source of demand for U.S. Treasury bonds! The Treasury has initiated a 60-day public comment period to assess the implementation details of the GENIUS Act.
The Treasury believes that the implementation of the GENIUS Act will structurally increase demand for short-term Treasury bonds. JPMorgan's Global Rates Strategy Chief Jay Barry pointed out: 'The Treasury absolutely believes that stablecoins will be a new, real source of demand for U.S. Treasury bonds.'
A $2 trillion influx of funds is about to surge, surpassing the total of Visa and Mastercard combined.
The Treasury Borrowing Advisory Committee (TBAC) expects that by 2028, the scale of stablecoins will rise to $2 trillion, with new holdings of U.S. Treasury bonds exceeding $1 trillion, making stablecoin issuers the second-largest holders of U.S. debt.
This number is shocking—last year, the global trading volume of stablecoins reached $15.6 trillion, exceeding the total amounts of Visa and Mastercard.
Cross-border payments are undergoing an efficiency revolution: traditional SWIFT transfers take 1-5 days, while stablecoin transactions can be completed in minutes; transaction fees have decreased from an average of 6.35% to less than $1 per transaction.
Global financial landscape reconstruction, digital extension of dollar hegemony.
The U.S. passed the GENIUS Act, mandating stablecoins to be backed by U.S. debt, solidifying the dollar's hegemony in institutional form. Currently, 99% of global stablecoins are pegged to the dollar, with over 80% of their reserves in U.S. Treasury bonds.
Taking Tether as an example, its holdings of U.S. Treasury bonds have surged to $98.5 billion, making it an important buyer of U.S. debt. In decentralized finance (DeFi) protocols, 90% of liquidity relies on stablecoins, forming a new paradigm of 'digital oil dollars'.
The EU and emerging economies are actively seeking breakthroughs, but the market capitalization of euro stablecoins is only $500 million, less than 0.2% of that of U.S. dollar stablecoins.
Old Zhu's perspective:
Don't underestimate this change! Just at the end of July, the Federal Reserve's meeting minutes discussed stablecoins at length for the first time in history, acknowledging that they can enhance payment efficiency and provide a lifeline to U.S. debt. Coupled with the GENIUS Act signed by Trump, stablecoins are directly incorporated into national strategy. Brothers, this is 'officially stamped'!
Now the market is already restless—the Treasury is personally involved, monitoring stablecoin issuers to buy U.S. debt; the tone of major Wall Street firms has also changed, with JPMorgan and Bank of America no longer mocking but quietly preparing their own stablecoins. Emotionally, institutions are no longer bystanders, but 'hunters' ready to jump in at any time.
Therefore, in the short term, although the cryptocurrency market is still fluctuating, the giant whale behind the scenes has already set off; the expectation of $2 trillion is not a mere fantasy but a solid national strategy.
Here’s the logic broken down for you:
Demand for U.S. debt—The Treasury is in urgent need of buyers, and the GENIUS Act requires stablecoins to be 100% backed by U.S. debt, essentially mandating issuers to buy in.
Stablecoin explosion—market capitalization of stablecoins is expected to soar from the current $250 billion to $2 trillion, a scale comparable to the combined total of Visa and Mastercard.
Closed-loop funding—stablecoins are 'on-chain dollars', money cannot avoid U.S. Treasury bonds, and flows directly into the cryptocurrency circle for payments, DeFi, and trading.
It's like connecting a 'Wall Street pipeline' to the cryptocurrency world; once the water flow is fully opened, BTC and ETH will be the first boats to rise. Don't forget, last year the trading volume of stablecoins already surpassed Visa and Mastercard, and now is truly the calm before the storm.
It's the right time to invest, these sectors will explode.
It's the right time to invest, these sectors will explode. As the regulatory landscape clarifies, institutional funds will flood in on a large scale. Bank of America CEO Brian Moynihan has confirmed that the internal team is developing its own stablecoin. Large institutions like JPMorgan have also softened their previous negative stance.
E-commerce giant Shopify introduced USDC payments this year, indicating an increase in acceptance among general merchants. On the institutional side, the recent on-chain repurchase demonstration of U.S. Treasury tokens shows that fixed-income trading can also be settled with stablecoins.
High liquidity and reward mechanism stablecoins are seen as direct competitors to money market funds. Coinbase grants rewards to USDC holders, effectively bypassing the GENIUS Act's restrictions on publicly declaring 'interest'.
The current market capitalization of stablecoins is approximately $250 billion, far less than the $29 trillion U.S. Treasury bond market. However, TBAC expects that by 2028, the scale of stablecoins will rise to $2 trillion, making stablecoin issuers the second-largest holders of U.S. debt.
My conclusion: this is not a future tense, but a present tense.
The Federal Reserve's pivot, the Treasury's direct maneuvers, Trump's approval of the act—each of these events is significant enough on its own, let alone as a series of combined blows.
My viewpoint is clear: stablecoins are the on-chain extension of dollar hegemony, but for us in the cryptocurrency world, they more resemble the next super funding pump. A massive influx of $2 trillion will either surge in over the next few years or take off right under our noses.
As for cryptocurrency prices? In a nutshell: when the water level rises, all boats will be lifted—what's crucial is whether you want to take your position in advance.
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