Yet, he said that this strategy addresses two problems: the Treasury’s inability to track Eurodollar flows and the need for price-insensitive buyers of government debt.
Stablecoin issuers must invest deposits in Treasury bills to maintain dollar parity, creating guaranteed demand for government debt.
Bessent can weaponize dollar dominance to force compliance with the adoption of stablecoins.
One example mentioned by Hayes is threatening to exclude foreign banks from Federal Reserve swap lines during financial crises. This move would push Eurodollar deposits toward US-regulated stablecoin platforms.
In the case, Hayes projects a total stablecoin circulation of $10 trillion by 2028. In this scenario, he argued that three protocols are poised for a “secular rise.”
The analysis forecasts that USDe could achieve a 25% market share of total stablecoins, potentially reaching a supply of $2.5 trillion.
The third protocol mentioned in the post is Hyperliquid. The protocol dominates decentralized perpetual trading, with a 63% market share.
Considering his $10 trillion prediction, the way these three protocols interact with stablecoins could heavily benefit them and their native tokens.
