Buffalo Bill’s $34T Stablecoin Gambit: Arthur Hayes on America’s Next Financial Superweapon

Thu Aug 28 2025
Arthur Hayes says U.S. Treasury Secretary Scott “Buffalo Bill” Bessent could use stablecoins to channel $34T into Treasuries, reshaping global finance and supercharging DeFi.

🦬 Buffalo Bill: The 34 Trillion Stablecoin Power Play

Arthur Hayes says U.S. Treasury Secretary Scott “Buffalo Bill” Bessent is about to pull off the greatest money hack of our era: turn stablecoins into America’s new financial superweapon.


⚡ Quick Hits

  • 💵 34T — potential capital inflow to U.S. Treasuries via stablecoins
  • 🌍 Global South + EU → the new on-ramp for dollar demand
  • 📱 WhatsApp, Insta, X wallets = banks bypassed
  • 🏦 Stablecoins = digital eurodollars 2.0
  • 🔮 Winners: ETHFI, ENA, HYPE and the entire DeFi universe

🌐 The Old World Is Cracking

  • Eurodollars (10–13T) = offshore USD outside U.S. control.
  • Problem? They don’t buy U.S. debt. Uncle Sam gains zero benefit.
  • Post-2008: QE, bailouts, dedollarization fears → trust erodes.
  • Result: BRICS stack gold, Treasuries lose shine.

🚀 Enter Buffalo Bill

Bessent’s pitch = stablecoins as turbocharged digital dollars.

How it works: 1️⃣ User sends USD → stablecoin issuer. 2️⃣ Issuer mints 1 token = 1 USD. 3️⃣ Collateral goes straight into short-term Treasuries. 4️⃣ Token circulates globally, but America gets the demand.

It’s the cleanest loop ever:

  • Users get safe digital dollars.
  • Issuers pocket yield (4.25%).
  • Treasury soaks up fresh demand.

💸 The 34 Trillion Shockwave

  • Eurodollar migration: 10–13T → stablecoins.
  • Global South + EU retail: +21T potential inflow.
  • Total: 34T, enough to supercharge U.S. Treasuries.

And it won’t happen via banks — it’ll be through apps you already use: 📱 WhatsApp, Insta, X wallets → stablecoin accounts for billions.

👀 Imagine: a gig worker in Manila stacking USDT on WhatsApp while local banks fade into irrelevance.


🔗 Stablecoins → DeFi Jet Fuel

Every USDT minted = new liquidity in DeFi.

Example:

  • Fernando in the Philippines stakes 1,000 USDT.
  • He gets psUSDT (yield-bearing token).
  • That fuels lending, DEXs, derivatives → TVL explodes.

Projects primed for moon math:

  • ETHFI ×34
  • 💠 ENA ×51
  • 🌐 HYPE ×126

🏦 Pax Americana, Tokenized

Hayes’ thesis: the U.S. doesn’t need tanks. It has stablecoins.

  • 💵 Dollar dominance 2.0 → digital rails, not eurodollars.
  • 🏦 Treasury, not the Fed, sets the tone.
  • 🌍 Local currencies risk collapse as citizens shift into stables.
  • 🔮 DeFi becomes the global financial OS.

The cost? Smaller nations lose monetary sovereignty. The gain? The U.S. wins the financial endgame.


✍️ TL;DR — Why This Matters

  • 🦬 Buffalo Bill = stablecoins as America’s new eurodollars.
  • 💵 34T demand could flow into Treasuries.
  • 📱 Social apps like WhatsApp & Insta become wallets for billions.
  • 🔗 Stablecoins fuel DeFi, boosting protocols like ETHFI, ENA, HYPE.
  • 🌍 Big picture: Stablecoins aren’t a side quest. They’re the future of global finance—and America just weaponized them.

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