Key facts
- Arthur Hayes believes money printing by US policymakers could boost crypto prices.
- AI companies require trillions of dollars for data centers, potentially necessitating monetary stimulus.
- Wall Street firms leverage existing customer relationships for an advantage in onchain markets.
- Intermediaries remain crucial in crypto markets as many users prefer centralized exchanges.
- Franklin Templeton aims to provide yield through tokenized money market funds.
- Demand for stablecoin payments is growing on trade routes between Latin America/sub-Saharan Africa and Asia.
Arthur Hayes, chief investment officer at Maelstrom fund, suggested that increased money printing by US policymakers to support AI development and finance government debt could lead to higher cryptocurrency prices. Speaking at CONNECT by Cointelegraph: Seoul Edition, Hayes indicated that AI companies' substantial funding needs for data centers leave few options other than monetary stimulus.
Hayes also noted potential monetary stimulus from China, which could boost demand for scarce assets. He is monitoring financial stress in France, including credit-default swaps related to BNP Paribas and French government bond spreads, describing the situation as a "slow motion train wreck."
The CONNECT event in Seoul also featured discussions on traditional finance's move onto the blockchain. Catrina Wang, general partner at Portal Ventures, stated that established banks and asset managers have an advantage due to their existing customer bases. Todd McDonald, co-founder of R3, highlighted that public blockchains can offer access to customers beyond institutional networks.
Justin Kugel, executive vice president of growth at World Liberty Financial, observed that intermediaries remain important in crypto markets, as many users prefer the security of centralized exchanges over managing their own assets. Chetan Karkhanis, senior vice president of digital asset client engagement at Franklin Templeton, indicated the firm's focus on providing yield through tokenized money market funds rather than issuing its own stablecoin.
Haonan Li, co-founder and CEO of Codex, reported growing demand for stablecoin payments along trade routes connecting Latin America and sub-Saharan Africa with Asia. Ilya Podoynitsyn, co-founder and CEO of FinHarbor, advised companies considering crypto treasury strategies to ensure they have sufficient excess liquidity and carefully assess their risk tolerance. Michael Camarda, chief development officer at SharpLink, discussed strategies for treasury companies, such as share buybacks and Ether purchases, to appeal to different investor groups.