JP Morgan launched a USD-pegged stablecoin on the Base blockchain. The bank profits by getting clients to adopt it, then investing the backing cash in Treasury securities for risk-free yield. The speaker argues this mimics the Fed printing money, and suggests the new Fed chair's crypto holdings create incentives to promote stablecoin liquidity.
We had JP Morgan just launched their own stablecoin on the Base public, public blockchain, not private blockchain. We're talking about public blockchain, one that me and you could use. They launched their own stablecoin. They launched a product and they're trying to make money. I'll show you how they make money. So what they do is they have people adopt their stablecoin. I don't know, maybe their clients, their trillions and trillions of dollars that their clients use, bank deposits. They force them to adopt their own stablecoin. Now they hold that stablecoin Right? And they use it because the stablecoin just stays the same value of USD. So they use it for whatever the customer's happy. They don't care as long as it stays the same value. But if you understand the mechanics of a stablecoin, they're legally allowed to take that cash and invest it into the US government to pay off the debt. And they get a yield on it. So they take no risk at all. It's their own stablecoin. They're making a whole bunch of money from the US government. The US government is getting their debt paid off. They're happy. And all of that money is being injected. The liquidity is being injected into the economy while everybody's waiting for the Federal Reserve. The Federal Reserve is not cutting interest rates this year. Everybody's freaking out and panicking. That is not the new mechanism in which they're injecting liquidity into the economy. Have you not realized that yet? What they're using is stablecoin, sir. They can take that money— if you didn't know how this works, they could take the stablecoin money, put it into the US government. Now there's more liquidity in the US government. This is the same exact principle of printing money with the Federal Reserve when they drop interest rates. It's liquidity being injected into the American market, specifically the government, and then they use it to fund things. That's how this works. That's how the roads get paid for when it gets built. They're funding the US, sir. All that money goes into all products and goods. This is the new mechanism. I mean, if you haven't caught it by now, the guy in the Federal Reserve chair that just got sworn in, this dude owns like 35 crypto projects. And I looked at his portfolio. This dude's not joking. He's got like savage decentralized finance, like Crazy ones that I'm even surprised that he even heard of. I thought I was a degenerate trader. Like, I'm not calling him— it's a term in crypto, degen, right? He is a degen. That man has some crazy projects like Blast. Like, he's holding Blast. That is like a crazy chain. Like, and yeah, I don't know. Like, he's definitely in there. He has his hands all up in crypto, 30+ projects. He's the Fed chair. Of course, he's going to want to push all that liquidity through stablecoins so the banks get rich and America gets funded. And the people that are smart adopting the new plumbing of the financial system get rich.
