Bitmex founder: Big banks will eventually cannibalize Tether’s business model

Bitmex founder Arthur Hayes discussed the ultimate demise of Tether and other stablecoin companies. Hayes explained that Tether's business model involves acquiring US dollars and investing in government bonds, and when big banks like JPMorgan are allowed to issue fiat-backed stablecoins, they will eventually eat into Tether's market share. Although Tether has positioned itself as an excellent product in the cryptocurrency market, its position is only achieved because the US refuses to provide similar products through the banking system.

Hayes stated that when the US Treasury allows traditional banks to issue stablecoins, this situation will end, and the legitimacy and support of stablecoins will not be questioned. Hayes predicts that banks like JPMorgan will replace Tether and other stablecoin companies and engage in the same interest game as today.