Arthur Hayes foresees banking giants overtaking Tether’s stablecoin dominance
Arthur Hayes, former CEO of Bitmex and CIO of Maelstrom, predicted that major banks like JPMorgan will overshadow Tether and other stablecoin companies once they are permitted to issue fiat-backed stablecoins. During an episode of Laura Shin’s Unchained podcast, Hayes outlined Tether’s successful business strategy, which involves taking dollars, investing them in treasury bills, and earning profits from the interest rate spread. This model has allowed Tether to achieve significant status in the crypto market, primarily due to the absence of a similar offering from the U.S. banking system. He highlighted that T ether owners generate substantial free cash flow annually, estimating it to be around $4 or $5 billion. However, Hayes emphasized that the current operational model of centralized stablecoins, which relies heavily on banking services for fund custody and clearing, is not sustainable. You might also like: Arthur Hayes dumps Solana for Ether, cites divine...