Topic: Eurodollar

Scott Bessent is theorized to be planning a "stablecoin gambit" to gain control over the $13 trillion Eurodollar market. By backing stablecoins with short-term U.S. Treasury bills and offering government guarantees, the Treasury could bypass the Federal Reserve's control over interest rates. This move would force offshore dollar holders into a regulated U.S. system, providing a massive new funding source for the government.

The "Eurodollar" market—U.S. dollars held in banks outside the United States—is being transformed by stablecoins like Tether, which are backed by U.S. Treasuries. Tether has gained 400 million users globally, particularly in emerging markets where people prefer the stability of a digital dollar over local currencies. Cantor Fitzgerald, led by Howard Lutnick, manages the Treasury holdings for Tether, effectively recycling global capital back into the U.S. financial system.