BlackRock, CalPERS Enter Bitcoin Arena: The $2 Trillion Stablecoin Future

As Bitcoin transitions from a speculative curiosity to a legitimate macro asset class, we find ourselves at a fascinating inflection point in financial history. The conversations have fundamentally shifted – no longer debating if institutions will embrace cryptocurrency, but rather how quickly they're accumulating positions and what strategies they're employing.

With BlackRock, Fidelity, and even pension giants like CalPERS dipping their toes into the digital asset waters, we're witnessing the early stages of what could become a sovereign wealth race for limited Bitcoin supply.

In this issue, we dive deep into Bitcoin's emerging role in global monetary policy, explore the explosive growth of stablecoins as financial infrastructure, and examine Ethereum's existential value proposition as L2 networks continue their remarkable expansion. The institutional revolution is here – but what does it mean for early believers and the decentralized vision that started it all?

Bitcoin as Macro Asset, Institutional Adoption, and Nation-State Game Theory

Bitcoin’s evolution from an experiment to a global macro asset is now the dominant narrative in crypto investing. Across the podcasts, the discussion has shifted from “if” institutions and governments will adopt Bitcoin to “how fast” and “how much.” The ETF era, led by BlackRock, Fidelity, and others, has unlocked a new wave of capital, but the story is much bigger: Bitcoin is now at the center of debates about global monetary order, fiscal dominance, and the future of sovereign reserves.

Arthur Hayes, Michael Saylor, and a host of macro thinkers argue that the next phase of Bitcoin’s growth will be driven by a combination of relentless deficit spending, the need for pristine collateral, and a global “arms race” among nation-states and institutions to accumulate BTC. The US Treasury and Wall Street are openly modeling a $2 trillion stablecoin market by 2028, and the “multiplier effect” of new inflows is at an all-time high due to the shrinking liquid supply of Bitcoin.

Yet, this institutionalization brings new risks and paradoxes. As MicroStrategy, Twenty One Capital, Tether, and others race to accumulate ever-larger shares of the supply, some worry about concentration and the tension between Bitcoin’s decentralized ethos and the reality of ETF and corporate vaults. Meanwhile, public funds and pensions (CalPERS, Wisconsin) are beginning to explore Bitcoin, and US states are passing or considering Bitcoin reserve bills—signaling a new era of public sector adoption.

The consensus is that Bitcoin’s resilience, scarcity, and macro tailwinds are stronger than ever, but the path forward will be shaped by the interplay of liquidity, regulation, and the evolving role of institutions and governments.

Stablecoins & Tokenized Real World Assets (RWAs): The New Rails of Global Finance

Stablecoins and tokenized real world assets (RWAs) have emerged as the most significant “killer app” in crypto, with implications that reach far beyond the industry. The US Treasury and Wall Street are now openly projecting a $2 trillion stablecoin market by 2028, and stablecoins are already becoming the marginal new buyer of US Treasuries. This is not just about crypto—it’s about the future of the dollar, global capital flows, and the architecture of the financial system.

Nathan Allman (Ondo Finance) and others argue that the true value of tokenization is not just in creating liquidity, but in expanding access to already-liquid assets (treasuries, equities) and enabling on-chain programmability. BlackRock, Franklin Templeton, and Goldman Sachs are racing to tokenize funds, and TradFi giants are partnering with crypto-native protocols to reach new markets. The convergence of stablecoins, tokenized treasuries, and on-chain money markets is creating a new “layer” for global finance—one that is programmable, borderless, and increasingly competitive with banks.

Yet, this transformation is not without risks. The debate over yield-bearing vs. non-yield stablecoins, regulatory arbitrage, and the potential for stablecoins to disrupt bank funding is heating up. Tether, Circle, Stripe, Visa, and Mastercard are all launching new products, and the competition for market share is fierce. Meanwhile, the impact on DeFi and crypto-native assets is still uncertain: will value accrue to protocols, banks, or users?

The consensus is that stablecoins and RWAs are inevitable, but the winners—and the value capture—are still up for grabs. For investors, this is both an opportunity and a challenge: the rails are being rebuilt, and the next decade will be defined by who controls the flow of money and assets on-chain.

Ethereum, L2s, and the Value Accrual Debate: The Platform’s “Midlife Crisis”

Ethereum is at a crossroads. As L2s (like Base, Arbitrum, Optimism) explode in usage, the question of “who captures the value” has become existential for ETH holders and the future of the platform. Michael Nadeau, Bankless, and others frame this as Ethereum’s “midlife crisis”: is what’s good for L2s actually good for Ethereum, or are L2s cannibalizing the base layer’s value?

The data is stark: Base has generated $106 million in fees, $768 million in GDP, and $4 billion+ in stablecoins, but only a small fraction of that flows down to ETH holders via blobs and burned fees. Simulations show that even with 10x growth in L2 activity, the value accrual to ETH is limited unless the protocol can scale blobs and maintain low transaction costs. Meanwhile, Solana is outpacing Ethereum in real value to token holders, and the “winner’s game” for L1s is more competitive than ever.

The Ethereum Foundation, under new leadership (Tomasz K. Stańczak & Hsiao-Wei Wang), is pivoting to a product/UX focus, with a roadmap centered on scaling the L1, scaling blobs, and improving user experience. The community is demanding faster execution, clearer communication, and a renewed focus on value capture. Yet, the debate over L2s as “parasitic” or “symbiotic” remains unresolved, and the future of ETH as a platform is still in flux.

The key questions are: will ETH remain the “land” on which the crypto economy is built, or will value migrate to L2s and competing L1s? Can Ethereum accelerate its roadmap and product focus to stay ahead?

The answers will shape the next phase of crypto’s evolution.

DeFi Super Apps, Aggregators, and the Solana Ecosystem: The New Crypto Business Models

The rise of DeFi “super apps” and aggregators—especially on Solana—marks a new phase in crypto’s evolution. Jupiter, Hyperliquid, Boop, Pump.fun, and others are building platforms that aim to be the “everything app” for on-chain finance, trading, and speculation. The vision is clear: aggregate all liquidity, offer seamless UX, and capture user attention and flow.

Kash Dhanda and others argue that product, brand, and community are the new moats. Jupiter’s aggregator is integrated everywhere, and improvements ripple across the ecosystem. The “super app” model is not just about trading—it’s about onboarding, discovery, and vertical integration. Meanwhile, meme coin launchers like Boop and Pump.fun are redefining user acquisition, airdrop farming, and the business of speculation.

Hyperliquid and Kinetic are pushing the boundaries of on-chain leverage, liquid staking, and composability, with “builder codes” enabling anyone to tap into deep liquidity. The competition is fierce, and the pace of innovation is relentless. Yet, this new model brings risks: meme coin culture, extractive business models, and the potential for centralization and bloat.

The consensus is that aggregators and super apps are winning, but the long-term value capture is still uncertain. For investors, the key is to understand the new moats—product, UX, community, and integration—and to watch for the platforms that can sustain growth as the ecosystem matures.

As we wrap up this issue, it's clear we're witnessing a profound transformation in the financial landscape. Bitcoin's evolution into a legitimate macro asset, the explosive growth of stablecoins as financial infrastructure, and Ethereum's complex relationship with its L2 ecosystem all point to a maturing industry that's increasingly intertwined with traditional finance. The institutional revolution is indeed here, bringing both unprecedented opportunities and new challenges to the original decentralized vision.

We'd love to hear your thoughts on this shifting landscape: Which of these trends do you believe will have the most significant impact on your crypto portfolio in the next 12-18 months?

Reply directly to this email with your perspective – your insights help shape our coverage and keep this conversation going as we navigate these fascinating developments together.