US Debt Crisis May Send Corporate Bonds On-Chain, Slash Stablecoin Demand

Zhu Su, co-founder of the bankrupt crypto hedge fund Three Arrows Capital and founder of the OPNX exchange, has made a bold prediction about the future of corporate bonds in the crypto space.

In a recent post on X, Zhu argued that if the US dollar begins losing value rapidly due to a debt crisis, investors would have little reason to hold stablecoins yielding 0%, preferring assets like Apple corporate bonds offering around 6% yield.

This scenario could accelerate the migration of corporate bonds onto blockchain networks, while simultaneously reducing the appeal of stablecoins. Zhu suggested that companies would move bond issuance on-chain to raise funds more cheaply from dollar-holding investors, leading to a significant decline in overall stablecoin demand.