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GM. This is Milk Road – the ‘weather man’ of crypto newsletters. |
(We let you know what to expect, ahead of time). |
Here’s what we got for you today: |
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THERE’S A STORM BREWING IN STABLECOINS ⛈️ |
We just read ARK Invest’s ‘Big Ideas 2025’ report, and had two big ‘Oh, damn! Ok.’ moments in the process… |
First: we (the crypto community) still aren’t bullish enough on stablecoins. |
Second: stablecoins are in the lead to become crypto’s first global mass-market product. |
(Not crypto AI, not gaming, not Hermione – stablecoins). |
Alright, now – lettuce bring those same ‘Oh, damn! Ok.’ moments straight to you – starting with: why we’re not bullish enough on stablecoins… |
1/ Stablecoins overtook Mastercard and Visa in transaction value in 2024 |
Stablecoins processed an eye-watering $15.6 trillion in transaction value in 2024! |
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2/ Tether makes more net income per employee than any other leading financial firm |
In just about any product category, the faster, more efficient, more profitable systems are most likely to win out over time. |
And Tether (the company behind $USDT) is putting that on full display here, beating out Visa, Mastercard, and Warren Buffet’s Berkshire Hathaway in terms of total net income per employee. |
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3/ At $203B, the stablecoin supply represents ~0.97% of M2 money supply in the US |
M2 = a measure of the money supply that includes cash, savings accounts, money market accounts, and time deposits. |
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Ok – so all of the above shows killer growth in stablecoins over the past 5 years – but how are they going to break out from being a ‘crypto-natives only’ product, and into the mass market? |
Short answer: by decentralizing global demand for US dollars. |
Long answer: The United States has a problem – and it’s one that’s often missed by the average crypto investooor. |
See, major economies around the world have been selling their $USD/$USD-equivalent holdings of late, and it’s a trend that could cause some major issues down the line. |
‘Cause if there isn’t consistent demand for US dollars from deep pocketed nation states, it could lose a worrying amount of its value. |
The biggest/most obvious solution to this problem right now? |
Decentralization of demand, through stablecoins. |
Translation: instead of allowing a select few political figures to control the global demand for dollars, the US could export $USD to everyday people in need of stable currencies with low inflation. |
And this market wouldn’t just be made up of countries with insane inflation rates like Venezuela or Argentina – but any country with higher inflation than the United States. |
Right now, Tether ($USDT) and Circle ($USDC) are the 20th largest buyers of US Treasury Securities (which are kind of like yield-bearing forms of $USD). |
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By making access to US dollars fast, cheap, and permissionless for everyday people – Tether & Circle could soon be working their way higher up that list, and creating a source of global demand for US dollars that rivals even the larger nations. |
…all that’s needed is a little push from the US government. |
And it looks like that’s exactly what’s about to happen (scroll down to learn how). 👇 |
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U.S. POLITICAL SUPPORT FOR CRYPTO REFUSES TO SLOW DOWN 🏃♂️ |
Q: How do you increase global demand for US dollars via stablecoins? |
A: No idea! But you first start by creating/passing clear legislation within the US. |
(And it looks like that’s what we’re about to get). |
Here are three pieces of bullish crypto news from the realm of US politics – including, but not limited to, the new momentum surrounding stablecoins… |
1/ David Sacks (America’s ‘Crypto Czar’) announces plans for a new stablecoin bill |
Yesterday, D Sacks (wait, nope. Yep, I hear it. My bad) announced a rough plan for Congress to move forward with digital asset legislation, starting with a strong focus on stablecoins, stating: |
“Stablecoins have the potential to ensure American dollar dominance internationally…and in the process create potentially trillions of dollars of demand for US Treasuries” |
Now, to the crypto community, this felt like a total nothing burger – many were expecting a clear piece of legislation, ready to pass through congress – and instead they essentially got this: |
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But once you take into account these changes will be forced to move at the speed of government, and this announcement comes barely two weeks into this new administration… |
It’s pretty freakin’ bullish! |
2/ Banks will soon be able to go onchain! You thought 2024 was the year of institutional support? You ain’t seen nothin’ yet… |
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3/ The President’s son bull-posted about $ETH |
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We know, we know, “Trump family bullish on crypto” is hardly breaking news anymore – but let’s set some context real quick… |
Imagine if this was four months ago and coming from Hunter Biden. The President’s son bull posting $ETH? The crypto community would have lost its freaking mind! |
4/ The SEC is scaling back its crypto enforcement unit |
The unit that was responsible for suppressing the US crypto industry’s growth from 2020-2024 is now being scaled back! |
Hopefully there will still be some semblance of a team keeping checks and balances on bad actors – but for now, we’re chalking this up as positive forward movement. |
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Oh, and while we’re on the topic of the SEC – guess who just got a new email address? |
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Which begs the question… |
Should we add the SEC to the Milk Road mailing list? |
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RETHINKING THE DOLLAR’S STRENGTH W/ DAN TAPIERO |
Yesterday, we sat down with the man, the myth – the legend with the big glasses: Dan Tapiero. |
Dan is the Founder/CEO/CIO/Managing Partner 1RT Fund & 10T Holdings, and a macro portfolio manager of 20+ years (translation: he really knows his stuff!). |
In this conversation we asked: |
Should we be rethinking the dollar’s strength? Is a $50T crypto market cap possible in the next decade? Which crypto sectors are set to see exponential growth in that time?
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It’s a banger of an episode – you don’t want to miss it! 👇 |
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YouTube | Spotify | Apple Podcasts |
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BITE-SIZED COOKIES FOR THE ROAD 🍪 |
Tracking funding rates = spotting pullbacks before they hit. Crypto pullbacks can get real ugly—that’s why you should keep an eye on funding rates. |
Bill Gates is bearish on crypto. He’s one Milk Road subscription away to change his mind. |
Sol Strategies just loaded up on more Solana. Nothing else to add except: buy the dip. |
Ondo to bring US stocks, bonds and ETFs onchain. We don’t cover a lot of RWA stuff in the newsletter but seems like it’s time to shift our focus. |
We’re hiring a social media manager! You’ll be the voice of Milk Road across X, Instagram, Youtube and maybe even more. Oh, and we’re a blast to work with. |
Where’s the best place to research crypto? Honestly, it really depends on what you’re looking for but here’s the exhaustive list of where the Milk Man does his research. You’re welcome. |
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MILKY MEMES 🤣 |
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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research. |
