The Real Stablecoin Game Isn't About Circle—It's About TBTF Banks and $10.1T in Treasury Liquidity

The Myth of Stablecoin Disruption

Don’t be fooled by the hype around Circle or Meta’s failed Libra. They’re footnotes in a much larger game—one where Wall Street’s biggest banks, not tech startups, control the future of money.

Stablecoins like JPMD aren’t about freedom or peer-to-peer finance. They’re digital conduits—backed by U.S. Treasuries, fed by SLR exemptions and IORB cuts—to channel over $6.8 trillion in deposits directly into T-bill markets.

The Mechanics of Monetary Engineering

When the Fed stops paying reserve interest (IORB), it doesn’t shrink its balance sheet—it unlocks \(3.3T in dormant liquidity. Add that to the \)6.8T from TBTF bank deposits, and you get $10.1T ready to flow into short-term Treasuries.

This isn’t inflationary printing. It’s calibrated monetization: stablecoins let banks buy T-bills without raising risk weights, turning idle deposits into yield-bearing collateral.

Why Bitcoin Is the Real Bet

While you wait for Powell to announce QE infinity, BTC is quietly rising—not because it’s ‘digital gold,’ but because when Treasuries absorb $10T+, equities have nowhere else to go.

The NASDAQ could hit 100K if TGA funding forces capital flight from bonds into risk assets.

You think this is DeFi? No—it’s RegFi: Regulation-as-Finance.

The Unseen Leveraged Position

TBTF banks don’t need crypto hype—they’ve already won. They hold $5.5T in T-bill purchasing capacity alone—not because they’re brave, but because regulators gave them permission to turn cash into debt-backed liquidity. Your move isn’t chasing Circle—it’s going long JPMorgan and BTC while the system absorbs this flood of capital.

Stay off the sideline. The game has begun.