Part 9/16:
A key macroeconomic backdrop underscores Livingston’s thesis. With U.S. federal deficits projected at nearly $1.9 trillion in 2025 and treasury issuance outpacing global savings, real yields are declining. As inflation-adjusted yields fall, demand for stablecoins like USDT is expected to skyrocket. JP Morgan projects a sixfold increase in stablecoin demand—up to $1.4 trillion by 2027—and USDT is poised to capture the lion's share.
This growing demand, combined with Tether’s own expanding treasury holdings and its on-chain settlement dominance, suggests that USDT could act as the settlement backbone of the next liquidity cycle—potentially eclipsing traditional fiat infrastructure.