Donald Trump is known for being unpredictable. From tariffs to policy reversals, he often changes his stance overnight. But there’s one thing he takes seriously—and hasn’t flipped on: U.S. dollar-backed stablecoins.
Crypto Was First to Face Trump’s Style
In the last four months, the crypto market has already been exposed to Trump’s erratic nature. Prices have fluctuated sharply. However, one thing has remained consistent: his clear support for dollar stablecoins.
Market Downturns and Bitcoin Sentiment
The asset market is undeniably in a downturn—Bitcoin, altcoins, you name it. As a lighthearted take, I even composed a song titled “Let Me Ride With Taemin When Coins Drop.” That’s how much the market sentiment has dipped.
To analyze the situation, we invited Professor Taemin Oh, from Hanyang University’s Philosophy of Bitcoin & Money department. Let’s dive in.
Real Bitcoin Portfolios: Prof. Oh’s Strategy
I used to own six bitcoins. I sold five last year and now hold just one. Bought in the high 40 million KRW range, sold around 90 million—so it was a good exit.
Professor Oh, on the other hand, has held Bitcoin for over a decade. While he didn’t disclose exact numbers, he admitted selling only small portions when needed for daily expenses. Even today, Bitcoin makes up about 70% of his total portfolio.
Why Is Bitcoin Lagging?
Bitcoin hit KRW 160 million right before Trump’s inauguration but has since pulled back. After briefly dipping to $70,000, it has since recovered to hover around $90,000.
The dip? Market uncertainty around Trump’s tariff announcements. But fundamentally, the Trump phenomenon is not noise—it’s structure.
Trump Phenomenon: More Than Just Words
Trump himself may be erratic, but the broader Trump movement is structural and strategic. And that structure supports Bitcoin and targets China economically—not just through tariffs, but via crypto assets and dollar stablecoins.
The Real Weapon Against China? Bitcoin & Stablecoins
China cannot be controlled merely through sanctions or tariffs. Their self-sufficient economy and abundance of engineering talent (unlike countries overly focused on medical schools) make them resilient.
But there’s one weakness: lack of financial openness.
Bitcoin exists outside capital controls, making it a powerful tool. For the U.S., it’s a double-edged sword: a potential threat, but also a strategic asset.
Stablecoins Backed by U.S. Treasuries: A Win for Trump
The most promising part? Dollar-backed stablecoins like USDT (Tether), which hold U.S. Treasury bonds as reserves. In fact, Tether ranked 7th globally in U.S. Treasury holdings in 2024—above China and even South Korea.
If this market scales 100x to 200x, it could generate massive demand for U.S. Treasuries—exactly what Trump’s team wants. With bond yields posing a real threat to the U.S. economy, stablecoin demand could indirectly stabilize the Treasury market.
Stablecoin Bill: Strategic Focus on Short-Term Treasuries
The bill currently being pushed by Trump’s team demands that stablecoins be backed only by short-term Treasuries (under 3 months). This avoids disrupting the Federal Reserve’s traditional control over long-term liquidity.
The aim is to generate global demand for U.S. Treasuries by letting foreign users store dollars on smartphones via stablecoins—boosting the dollar’s global dominance without war.
