Trillions are about to move onchain, sanctioned by the US government

Trillions of dollars are about to move onchain.

Because for the first time, the U.S. government has a reason to make it happen.

The flywheel that cements crypto's place in the world

Why the USG loves stables

The U.S. spends trillions more than it collects in taxes.

To fund the deficit, it sells debt in the form of Treasury bills (USTs).

But traditional buyers like China and Japan are stepping back, leaving a gap the U.S. needs to fill.

Stablecoins fill it. By design.

Stablecoin business model

Stablecoin issuers like Circle and Tether run one of the simplest, most profitable models in finance:

1. Taking in dollar deposits
   
2. Issuing dollar stablecoins on top
   
3. Using the deposits to buy t-bills and collect the yield
   

With t-bills yielding ~5%, it's a simple, ultra-profitable model.

It's made Tether the most profitable company in the world on a per-employee basis.

And Circle the hottest IPO of the year.

And stablecoin issuers a top 20 holder of USTs.

Now, banks are next

Thanks to the Genius Act, banks now have the green light to issue stablecoins.

And until now, they were limited in how much of their deposits they could deploy into t-bills.

But that’s changing.

The Fed recently voted to loosen those constraints, freeing up $5.5 trillion in balance sheet capacity for treasury buying.

Now, the US's largest banks can run the same model:

~ No interest paid to depositors
~ Yield captured via t-bills
~ Operational costs slashed with blockchains

The win-win-win

Stablecoins are set to 15x in market cap, from $250B today to $3.7 trillion by 2030, according to a report shared by Treasury Secretary Scott Bessent.

~ The U.S. government gets trillions in new demand for its debt
~ Banks get a high-margin, low-overhead product
~ Developers get a programmable, open-source version of the dollar

The dominance of the U.S. dollar is strengthened.

Circle and Tether, as early movers, continue to grow.

Crypto's place in the world is cemented.

Crypto wins

This might not be the cypherpunk utopia early builders envisioned.

But it’s the moment the tech finally gets mainstream product-market fit, at scale.

With trillions in stablecoins coming onchain:

1. DeFi becomes infrastructure, not a toy

2. Digital gold $BTC gets stronger

3. L1 tokens like $SOL and $ETH absorb more value

4. Equities and real-world assets follow

“Crypto” simply just becomes... the financial system.