BlackRock is increasing its position on the stablecoin market, in view of the expected passing of the GENIUS Act. According to inside information in the hands of Bloomberg, BlackRock plans to buy 10% of Circle, the second largest issuer of stablecoins after Tether. Circle has issued $36.7 billion of USDC stablecoins as of November 2024, and is going to be public soon.
BlackRock is already in the stablecoin business. For instance, it manages USDC invested in government money market funds. As Forbes earlier reported, it plans to invest a total of $16 trillion in “a new radical dollar rival” by 2030.
USDC, like other stablecoins, is a total scam. Investors buy a token with a 1:1 peg to the dollar. Circle then buys Treasuries with that money, and keeps the yield. As long as the tulip—sorry, the USDC—bubble grows, Circle can refund investors. When the bubble deflates, you can kiss the 1:1 value goodbye.
It looks like a “Collective John Law” is dictating U.S. financial policy. When his South Sea Bubble was already collapsing, Law kept issuing new paper which investors kept buying, to eventually lose everything, when the run started soon after. Trying to roll over the unsustainable U.S. debt with a Stablecoin-driven demand follows the same steps.
