Arthur Hayes on Monetary Stimulus, Wall Street Builds Onchain Infrastructure at CONNECT Seoul
At CONNECT Seoul, Maelstrom's Arthur Hayes discussed how government money printing could boost crypto, while traditional finance leaders outlined their blockchain strategies and competitive advantages.
Monetary Stimulus Could Revive Crypto Markets
During CONNECT Seoul, held as part of Korea Blockchain Week, Maelstrom fund’s chief investment officer Arthur Hayes outlined how government monetary expansion could benefit digital asset markets. Hayes emphasized that artificial intelligence companies face mounting pressure to finance massive data center infrastructure while simultaneously facing declining service prices. In response, policymakers may resort to currency creation as a way to support both technological development and manage public debt obligations.
Hayes further noted expectations that China might shift from a relatively conservative fiscal approach toward more aggressive monetary stimulus measures. Such a transition could potentially revitalize investor appetite for scarce and limited-supply assets. Beyond Asia, Hayes expressed concerns about financial stability risks emerging in Europe, particularly around French institutions and sovereign debt dynamics.
Traditional Finance Leverages Its Built-in Customer Advantage Onchain
Participants at CONNECT Seoul explored how established financial players are positioning themselves in blockchain markets. According to Portal Ventures partner Catrina Wang, banks and asset managers possess a significant competitive edge: they already maintain relationships with existing customers and investors. Controlling these established customer connections translates directly to controlling the underlying economics of blockchain finance.
R3, the blockchain infrastructure company, shifted its strategy to capitalize on this dynamic. After building its business around private financial networks using its Corda platform, R3 announced a collaboration in May 2025 to bridge traditional financial institutions and their assets with Solana’s public blockchain network. This move recognizes that public chains offer access to customer bases extending beyond institutions’ internal networks.
Intermediaries Remain Essential Despite Crypto’s Decentralization Promise
Despite crypto’s founding vision to eliminate middlemen, speakers at CONNECT suggested intermediaries remain essential to market participants. Justin Kugel, executive vice president for growth at World Liberty Financial, observed that many users prefer not to self-custody or conduct independent investment analysis. Instead, they value the protection and guidance provided by established trading and investment platforms—mirroring traditional finance’s structural model.
Franklin Templeton exemplified this approach, with senior vice president Chetan Karkhanis stating the firm has no plans to launch its own stablecoin. Instead, Franklin Templeton’s tokenized money market funds aim to generate investment yield while serving as a payment layer. The firm partnered with MoonPay in June to streamline conversions between supported stablecoins and its tokenized funds through onchain transactions.
Codex, a stablecoin foreign-exchange platform, identified emerging demand for digital currency payments along trade corridors connecting Latin America and sub-Saharan Africa to Asia, where buyers finance manufactured goods from eastern producers.
For companies exploring corporate crypto treasury strategies, practical caution is warranted. FinHarbor co-founder Ilya Podoynitsyn emphasized that organizations must maintain excess liquidity separate from operational needs before entering onchain assets, and should tailor strategies to their own risk profiles rather than copying peer companies.
Monetary expansion could support broader crypto valuations while established financial institutions consolidate control of emerging onchain markets.
Source: Cointelegraph. Not financial advice.