$3.7 Trillion Is Waiting to Gush Into Crypto

When I started buying bitcoin in the early 2010s, it was trading around 25 cents.

Back then, there weren’t any exchanges to handle transactions. You couldn’t just log into Coinbase and click “buy.” You had to go straight to the source.

Miners who actively produced bitcoin would sell some of their tokens to newbies armed with a few dollars and a heavy dose of curiosity.

I was one of those curious newbies.

Sellers would write down their 24-word seed phrase on paper and hand it to you. (A seed phrase is like a password to access or recover your crypto from a wallet.)

But these transactions came with risks.

At the time, I was living in New York. And I had heard tales of transactions taking place in the back alleys of Manhattan. The threat of violence always loomed large.

As a buyer, you had to trust that the phrase was correct... And since both parties had the keys to each other’s bitcoin wallets, the opportunity for theft was high.

Unlike the crypto hacks you see today, back then we had “$5 wrench” attacks. Which was as simple as someone buying a $5 wrench... hitting you across the head with it... and taking your seed phrase.

A few years after I first got into crypto, I remember trying to get the owner of a Brooklyn bodega to accept bitcoin as a payment for groceries.

He wouldn’t because the transaction would take at least 10 minutes. Too bad for him. That grocery bill would’ve been worth thousands today.

Since Daily editor Teeka Tiwari recommended bitcoin in 2016 at north of $400, it’s up over 25,000%. But of course, bitcoin was just the start of the crypto story.

In 2013, a new blockchain called Ethereum (ETH) came onto the scene.

Back then, Ethereum could handle 15 transactions per second. That was lightning-quick compared to one transaction every 10 minutes or so on the bitcoin network.

I bought ETH near $9. I even got my hairstylist to accept it as payment for services.

There was a problem, though…

Because of the long transaction times during high-traffic periods, by the time the payment went through, the ETH I had paid him with could be worth as low as $10 or as much as $30.

(Hopefully, he held on to his ETH, though. Since Teeka recommended it in April 2016, it’s up over 28,000%.)

Ethereum’s goal was to unleash digital assets at a global scale while maintaining the security and decentralization of bitcoin. But even Ethereum hasn’t been able to scale wide enough and fast enough to handle the mass adoption underway in crypto.

But a solution is coming soon. And it just got a huge stamp of approval from the U.S. Senate.

The Future Belongs to Crypto

We’re on the cusp of mass adoption of crypto. Boston Consulting Group projects the number of crypto users to reach 1 billion by 2030.

That’s why we believe, in the future, most traditional finance (TradFi) will migrate to decentralized finance (DeFi).

In other words, instead of going through a bank or brokerage firm to borrow, lend, or finance money… Or using a credit or debit card to pay for goods and services… You’ll handle all your finances in some form of crypto.

It’s my conviction that kids born today won’t ever open a traditional bank account.

This brings us back to the early problems of bitcoin and Ethereum. Despite all the recent advances in blockchain technology, crypto is still highly volatile.

On top of that, trying to sell smaller altcoins for fiat or convert them to bitcoin can be an absolute pain. You have to go through decentralized exchanges… Use multiple wallets… And then send them back to a centralized exchange.

There’s a simple ready-made solution to this problem: Stablecoins.

A stablecoin is a cryptocurrency with a fixed price. It’s designed to maintain a stable value. Many of them are pegged to the U.S. dollar (USD) and trade at or near $1.

They’re popular among unbanked populations because, as digital assets, they enable anyone to send value to anyone else anywhere in the world at any time.

Want to send a payment to your relative in Mexico at 6 p.m. on a Friday but don’t want them to have to wait the entire weekend before they receive it?

Send the transaction as a stablecoin, and they’ll receive it in seconds on the blockchain.

Unlike altcoins – which can see price swings of 50% in a matter of days – stablecoin values don’t fluctuate that much. Again, they generally stay pegged to $1 USD.

The price stability, ease of use, and fast transaction times have helped stablecoins grow in popularity. And Wall Street’s appetite for them has been insatiable.

Earlier this month, stablecoin giant Circle went public at a valuation near $6.9 billion. After just two weeks of trading, its market cap has ballooned to nearly $38 billion.

In February, payments processor Stripe acquired stablecoin company Bridge for $1.1 billion. And last week, the company acquired crypto wallet developer Privy for an undisclosed amount.

If you’ve ever made a mobile or online payment or used a credit card reader at a retailer, your payment likely went through Stripe’s payment rails.

Last year, it processed $1.4 trillion in payments, which is almost 5% of U.S. GDP. In the coming years, I believe stablecoins will account for a great deal of those payments.

Today, Tether (USDT) is the largest stablecoin in the world.

Tether has a private valuation of $515 billion. That would make it the 19th largest company in the world, surpassing multinational giants like Costco and Coca-Cola.

Despite that insane valuation, Tether CEO Paolo Ardoino said it’s still not “high enough.”

And he has a point…

According to a report by Citi, the stablecoin market could hit $3.7 trillion by 2030. By comparison, the entire crypto market cap is $3.45 trillion, including bitcoin.

As you can see, stablecoins are now Big Business. And Wall Street just got the green light from the U.S. Senate to create more of them…

Treasury Secretary: Stablecoin Market Could Surge to $3.7 Trillion

On Tuesday, the U.S. Senate passed the GENIUS Act with an overwhelming 68-30 bipartisan vote.

The bill regulates the stablecoin market and creates a clearer framework for banks, companies, and other entities to issue them.

This bill is a huge deal. But don’t just take my word for it.

Here’s what Treasury Secretary Scott Bessent posted about the passage of the GENIUS Act on the social media platform X:

I can’t tell you how extremely bullish the rise of stablecoins is for the entire crypto ecosystem. After the bill passed the Senate, Circle shares skyrocketed as much as 50%.

That’s because along with bitcoin, stablecoins are the lifeblood of the crypto ecosystem.

According to crypto analytics firm Santiment, Tether inflows act as critical “fuel” for crypto bull cycles, creating positive sentiment and increasing liquidity in the market.

And a recent report by Standard Chartered and Zodia Markets predicts stablecoins will grow from 1% to 10% of the U.S. M2 money supply and foreign exchange transactions.

M2 money supply refers to the total amount of money available in the economy, including cash, checking deposits, and easily convertible near money.

As of April 2025, the M2 money supply in the United States is about $21.9 trillion. Ten percent of that would be $2.2 trillion. That’s a huge pool of liquidity just champing at the bit to enter the crypto market.

This is all part of a phenomenon we call The Convergence. If you’re not familiar with The Convergence, it’s the confluence of three major trends…

The launch of exchange-traded funds (ETFs) focused on crypto income tokens… A friendlier regulatory landscape… And mass financialization of crypto products leading to global institutional adoption. (You can learn more by going here.)

When we first introduced our research on The Convergence, bitcoin was trading a hair below $54,000. Since then, it’s traded as high as $112,000. Over the coming years, we believe it’ll eventually trade as high as $1 million.

As The Convergence unfolds, our research suggests much of that $3.7 trillion in liquidity from the stablecoin market will flow into a tiny subsector of crypto tokens that have automatic payouts.

We call these “crypto payouts.”

What makes these tokens unique is that they have automatic payouts that generate income month after month after month… no matter what’s happening in the market.

That’s why we call them crypto payout coins.

It’s somewhat similar to the way some stocks pay dividends. Instead of receiving cash, though, you receive more of the underlying crypto.

Teeka recently held a special briefing to explain how these catalysts will push crypto payout tokens much higher. He also shared details about six crypto payout tokens we’re targeting in this niche sector.

You can stream the replay right here.

We’ve come a long way since the early 2010s when people bought bitcoin in the back alleys of Manhattan. Today, we can send stablecoins anywhere in the world with the click of a mouse from the comfort of our homes.

And as this adoption grows, both on the individual investor level and institutional level, we see money pouring into the best income-producing coins on the market next.

We’re still in the early innings of this mega trend. The only thing you have to do is position yourself before the floodgates open.

Stay curious,

Graham Friedman