On-Chain Bonds May Gain as US Debt Crisis Hits Stablecoin Demand

Zhu Su, co-founder of the bankrupt crypto hedge fund Three Arrows Capital and founder of the OPNX exchange, has sparked fresh debate about a potential shift in the way corporate bonds are issued and held.

In a recent post on X, Zhu argued that if the US dollar begins losing value rapidly, investors would prefer assets like Apple corporate bonds offering around 6% yield over holding stablecoins yielding 0%.

This could lead to a significant decline in overall stablecoin demand, as companies opt for cheaper on-chain funding by issuing bond directly to a global pool of investors via blockchain.