Could Tether Flip Bitcoin? - Arthur Hayes & Tom Lee

Why It Matters

If stablecoins like Tether scale to multi-trillion-dollar supply, they could redirect global dollar liquidity, disrupt traditional banking and Eurodollar markets, and accelerate adoption and valuation of crypto firms that enable on-chain dollar services.

Summary

Former BitMEX CEO Arthur Hayes and strategist Tom Lee discussed the realistic prospect of Tether—or similar dollar-pegged stablecoins—overtaking Bitcoin in market prominence by tokenizing US dollars at scale. Hayes argued mass issuance of tokenized dollars could displace Eurodollar deposits and provide banking services to non-U.S. residents outside local central banks, aligning with U.S. policy aims. Lee quantified the potential upside, suggesting a jump from roughly $200 billion to $2 trillion in supply would create enormous value capture and materially boost crypto-related equities. Both concluded that the blockchain-native dollar could reshape capital flows and strengthen on-chain business models.

Original Description

Could Tether flip Bitcoin?

“I mean if Buffalo Bill Bessent and Trump had their way that would absolutely happen and it would come at the expense of Eurodollar deposit… banking every single person outside of the United States on the dollar bank account… that is exactly what they want to happen.”

- Arthur Hayes

"if we're just doing the math so let's say 100 let's say 200 billion servicing supply to 2 trillion that incremental 1.8 trillion... What value capture would Tether have? Its enormous."

- Tom Lee

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