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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:

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!

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.

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.

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).

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). 👇

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:

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…

3/ The President’s son bull-posted about $ETH

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.

Oh, and while we’re on the topic of the SEC – guess who just got a new email address?

Which begs the question…

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:

It’s a banger of an episode – you don’t want to miss it! 👇

YouTube | Spotify | Apple Podcasts

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.

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.