There is an enormous transformation happening. We are changing the financial systems on a global basis. This is not a short-term event. I am 75 years old. The implications happening today at breakneck speed will continue for the rest of my lifetime, even if I live another 25 years.
The sell-off happening in the market today is a short-term money crunch at the government level. We will revert (if not already) to the Printing Press, Debasement of Currency, Monetary Expansion or QE. It goes by many names, but it is the slow bankruptcy of the USA. We have no choice as a government. Wins on the east coast elections assure us that we will have Monetary Expansion. The current Administration needs to expand the monetary system if they wish to win in the November 2026 elections. America is not about to tighten its belt. Democrats will expand because the policies they won with, demand it.
Therefore, the selloff in Mining Metals and Crypto/Blockchain is a buying opportunity gift. I (LOTM) am not wavering in my conviction that the big money to be made from this slow
They Won’t Tell You It’s a Default: They’ll Just Debase Your Money
Published October 30, 2025 | James Lavish
Lavish is a Board Member of Strive (ASST* $1.29). Strive is owned in accounts related to LOTM
USA bankruptcy results in much higher prices for gold, silver (hard assets) and the integration of digital assets and uses (Crypto/Blockchain are the biggest beneficiaries of this slow Bankruptcy.
LOTM is moving forward with this theme intact.
The Next Internet Moment: How AI and Stablecoins Are Rewriting Money
October 21, 2025 by Jordi Visser free on-line article
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2026 will be the year investors are forced to understand stablecoins and it’s relationship to AI. Here is my attempt to help speed up the process.
Technology is always changing our lives. It usually takes time.
I can still remember rabbit ears, and less than 25 years later I can remember watching a Knicks game on a high-definition flat screen as Larry Johnson hit a four-point play against the Indiana Pacers in 1999.
Visual innovation is easy to understand, whether it’s a TV or the iPhone. It was also easy to grasp the move from cassettes to CDs to streaming. Even adopting the internet in 1995, which connected information, felt natural.
But for some reason, people get scared when you talk about changing money. When I lived in Brazil, my Portuguese teacher spent a full day explaining all the currencies the country had cycled through in just 20 years.
This brings me to crypto. Nothing brings out more defensive fear than saying money is about to change. Crypto in 2025 will make many people uncomfortable as it connects value. And it won’t happen slowly, because AI is about to hit the gas pedal so hard that our current financial plumbing simply can’t keep up.
Most people still think crypto is just Bitcoin speculation or NFT art. But something much bigger and frankly, more boring-sounding is happening right now: the United States is rewriting the rules of global money itself.
If you’re not paying attention, you’re missing what Peter Diamandis called “probably the most significant economic legislation and changes that we’ve seen in our lifetimes.”
After listening to my second Crypto Forward episode from his Moonshots podcast, I decided, as we near the passage of the Clarity Act and year-end, to write a piece using those conversations as a springboard to help people learn what’s coming. The monetary system is about to be overhauled to match the speed of AI.
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The Broken Pipes Nobody Talks About
Here’s the uncomfortable truth: our financial system is running on infrastructure from the 1970s.
When you deposit money in a bank, something insane happens. As Jeremy Allaire, CEO of Circle (the company behind USDC), explained on Moonshots:
“When you deposit, say a million dollars into a bank, what happens? They’re borrowing a dollar from you and then they’re permitted to lend it out 12 times. That’s insane. That’s what fractional-reserve banking is.”
Wire transfers take days. International remittances cost a fortune. Settlement cycles are measured in T+3 (three business days). And when you send money across borders, it bounces through multiple intermediaries, each taking their cut.
That worked when humans were the only economic actors.
But we’re about to hand the economy over to AI agents and they don’t sleep, don’t take weekends, and don’t care about “business hours.”
As Dave Blundin put it bluntly on Moonshots:
“You can’t use the SWIFT network and 3-day settlement and $2 transaction fees in the world we’re moving into. This is 100% required.”
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Enter: The Genius Act and the Coming Clarity
While everyone was watching ChatGPT and debating AGI timelines, something remarkable happened in Washington: bipartisan agreement on crypto.
The Genius Act (passed earlier this year) and the forthcoming Market Structure Act represent the biggest overhaul of U.S. financial guardrails in decades. Together, they:
- Legalize payment stablecoins as a new form of electronic money, fully backed 1:1 by U.S. dollars or Treasury bills
- Clarify regulatory roles between the SEC and CFTC
- Modernize tax rules for digital assets, staking, and DeFi
- Ban fractional-reserve stablecoins (protecting against the same banking instability that caused 2008)
- Open 401(k)s to crypto and tokenized assets
Why does this matter? Because for the first time, entrepreneurs can build on digital money without lawyers telling them “don’t do it.”
As Eric Pulier, founder of 16 companies and chairman of Vatom, explained:
“When things are unclear, highly ethical people don’t touch it because it’s unclear and really sleazy people do it anyway… But when you have clear rules, just like in a sport, ethical people can play.”
The Genius Act doesn’t just regulate crypto. It creates the internet’s first native financial layer.
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What Is a Stablecoin, Really?
Think of a stablecoin as a digital twin of the U.S. dollar that lives on the internet.
Here’s how Jeremy Allaire defined it: “A stablecoin is a representation of a fiat-denominated currency as a cryptocurrency… operating on public internet networks colloquially known as blockchain networks. They’re fully backed and fully reserved by such fiat currency.”
Translation: unlike a bank deposit (which can be lent out 12 times), a stablecoin like USDC is fully reserved every digital dollar is backed 1:1 by actual dollars or ultra-safe assets like short-term Treasury bills.
And unlike traditional money, it:
- Settles instantly (not in three days)
- Moves globally (no wire fees or intermediaries)
- Is programmable (you can code rules directly into it)
- Is transparent (you can audit reserves in real time)
Salim Ismail summed it up perfectly:
“Abundance equals scarcity minus trust. And what you’ve done profoundly well is create structures for scaling trust.”
In other words: stablecoins are trust infrastructure for the internet age.
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Why This Is Actually About AI, Not Just Crypto
Here’s where it gets really interesting.
AI agents are about to become economic actors, buying services, negotiating contracts, hiring humans (or other AIs), and moving money around 24/7.
But AI can’t use Venmo. It can’t wire money. It definitely can’t fill out KYC at a bank.
What AI can use are smart contracts and stablecoins, programmable money that operates at machine speed.
Jeremy Allaire made a striking prediction:
“I think the vast majority of stablecoin transactions are going to be AI-intermediated in five years.”
Think about that. In five years, most money won’t be moved by humans clicking “send”, it’ll be moved by intelligent agents optimizing capital allocation in real time.
And the speed implications are profound. As Salim Ismail noted:
“Money is about to go from static to supercharged… Monetary velocity is about to pick up massively, and I don’t think central bankers are even aware of what’s coming.”
Peter Diamandis agreed:
“I really think people have no idea how fast the economy is going to accelerate on the back of AI and crypto together.”
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The $600 Billion (Actually, Trillions) Tokenization Wave
The Genius Act doesn’t just enable stablecoins. It opens the floodgates for tokenizing everything.
Real-world assets (RWAs) like real estate, stocks, bonds, commodities, or even fine art can now be represented as digital tokens, fractional, programmable, and globally tradable 24/7.
Eric Pulier’s example:
“If you have a $30 million house and want to borrow a couple million against it… everything changes now. With instant ownership proof and smart contracts… in seconds it becomes collateral.”
Or as Peter put it:
“If you’ve got an apartment on Central Park West worth $20 million, you could tokenize it into a million tokens worth $20 each. I could buy 100 tokens and own a small piece of that.”
The official estimate is $600 billion tokenized by 2030.
Salim Ismail thinks that’s laughably low:
“I think that’s 100 times bigger… $120T in real estate, $100T in equities, $13T in Treasuries, $12T in precious metals. It’s all coming.”
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The Dollar’s Secret Weapon
Here’s the geopolitical chess move most people are missing:
The Genius Act requires U.S.-issued stablecoins to be backed by dollar assets, primarily Treasury bills.
That means every USDC transaction, every tokenized dollar moving around the globe, creates demand for U.S. debt.
As Jeremy Allaire explained:
“What can the United States do to maintain its position as the global reserve currency? That’s where stablecoins come in… Let’s make dollars have higher utility by allowing them to compete as free-circulating digital currency on the internet.”
China tried a central-bank digital currency (the e-CNY). It flopped because:
“People want the most innovative product… Alipay and WeChat Pay just have more utility.”
Private-sector innovation beats government mandate. While China doubled down on centralized control, America made the opposite bet: open-source capitalism. Let Circle, PayPal, and others compete to build the best dollar rails and export them globally.
Result: the U.S. becomes the “crypto capital of the world” and reinforces dollar dominance. Monetary judo.
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Sidebar: Argentina Shows the Flip Side (and a Warning for EMs)
If the U.S. sees stablecoins as a strategic asset, emerging markets see something else: a lifeline and a risk.
In countries with chronic inflation and weak banking trust, Argentina is exhibit A, households and SMEs increasingly hold USD stablecoins (USDC/USDT) as a hedge and for debasement and cross-border payments. That gives savers a fast, internet-native escape from depreciation and capital controls.
A recent Standard Chartered research note frames the macro risk: as stablecoin rails spread, EMs face “crypto-dollarisation.” That can:
- Erode monetary transmission, as residents shift from local currency deposits to dollar-linked tokens;
- Pressure bank funding, if deposits leak to self-custodied wallets and offshore stablecoin treasuries;
- Complicate FX management, because outflows can occur 24/7 outside the banking system.
The same features that make stablecoins powerful, speed, programmability, open access also make them a shadow escape valve from weak policy frameworks. Argentina’s experience suggests EM policymakers will need to compete on utility (better local rails, faster RTGS, tokenised bank money, sensible on/off-ramps) rather than rely solely on controls. Otherwise, households will keep opting into “dollars with an API.”
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The Corporate Transformation Nobody’s Ready For
If you’re a CEO, here’s what’s coming:
Your company will have an on-chain treasury. Cash flow, payments, and equity will be tokenized, auditable in real time, and programmable via smart contracts.
Why? As Salim Ismail put it:
“Create a digital twin with everything being AI-native and digital-native with smart contracts running most of your operations… If you’re not doing that, somebody else is doing that to you.”
Eric Pulier described a future where loyalty and ownership merge:
“If you’ve tokenized your equities… you’ll know who your shareholders are. At the three-year anniversary of owning US Steel, you get dinner for two and a thank-you from the CEO… Things drop into your wallet. Loyalty systems now extend into true ownership.”
Imagine:
- Coca-Cola shareholders automatically getting perks at Coca-Cola Stadium
- Tesla owners earning tokenized rewards tied to referrals
- Airline miles becoming yield-bearing tokens you can spend anywhere
This isn’t Web3 hype. It’s financial social architecture enabled by programmable money.
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The On-Chain Corporation
Allaire went further, describing “economic operating systems”:
“Form capital by selling tokens… store the treasury on-chain… automate monetary flows… run governance on-chain with provable voting… delegate work to AI or humans.”
Translation: we’re about to see the first fully on-chain companies where contracts, payments, governance, and even employment run in code.
Peter Diamandis summarized it best:
“Contracts, payments, treasury, governance, agents, even robots all on the blockchain developing products and services and delivering them.”
The velocity advantage will be crushing. As Salim noted:
“The velocity of those companies is going to be so explosive that I’m not sure any traditional corporation can compete.”
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The Guardrails Matter More Than You Think
All of this hinges on one thing: trust.
That’s why the Market Structure Act is so critical. It:
- Bans commercial banks from issuing deposit-backed stablecoins (preventing 2008-style leverage)
- Requires radical transparency (e.g., daily reserve reporting)
- Establishes clear rules for staking, DeFi, and tokenized securities
- Separates money from credit (full-reserve payments vs. lending)
As Allaire explained:
“Is there a way to have full-reserve payment system money separated from lending money? We could construct that on the internet… it’s totally necessary.”
Blundin’s counterpoint:
“The same thing will inevitably happen here if the SEC doesn’t get that guidance right. We desperately need it, but it’s not going to be trivial to make this real.”
Think of it like installing traffic lights on the information superhighway. Without them, chaos. With them, exponential growth.
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What’s Already Happening (Not Theory—Reality)
- Shopify rolled out USDC payments, even incentivizing merchants 50 bps to accept it
- Stripe integrated stablecoin rails
- BlackRock launched a tokenized money-market fund
- Microsoft signed a power-purchase agreement with fusion startup Helion (with on-chain settlement in view)
- 401(k)s now allow Bitcoin/crypto exposure under executive order
- Credit unions are experimenting with community tokens
As Jeremy noted:
“You can already use USDC via Visa and Mastercard rails, settlement happens in stablecoins even if the front end looks familiar.”
The rails are being built right now.
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The Coming Collision: Monetary Velocity Meets AGI
Here’s the endgame:
- AI agents become economic actors (buying, selling, negotiating, transacting)
- Stablecoins become their payment rails (instant, programmable, global)
- Tokenization unlocks trillions in dormant capital (24/7 liquidity)
- Monetary velocity explodes (money circulates 10x–100x faster)
- GDP growth accelerates (because machines don’t sleep)
Salim Ismail:
“Money velocity hasn’t recovered since COVID. With AI and stablecoins, money is about to go from static to supercharged.”
Peter Diamandis:
“People have no idea how fast the economy is going to accelerate on the back of AI and crypto together.”
Are central bankers ready? Jeremy’s answer:
“The really smart people are like, ‘Oh my god.’”
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Why Most People Still Don’t Get It
Because it sounds boring.
“Stablecoins” and “tokenization” don’t have the sex appeal of AGI or humanoid robots.
Here’s the analogy that makes it click:
- The internet in 1995 needed TCP/IP. Without that “boring” protocol: no email, no Google, no Amazon.
- AI in 2025 needs stablecoins and tokenization. Without that “boring” financial layer: no autonomous agents, no on-chain corporations, no 24/7 global economy.
The Genius Act and Market Structure Act are the TCP/IP of money. And just like in 1995, the people who understand this first will build the next trillion-dollar companies.
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The Bottom Line
The convergence of three forces is unstoppable:
- AI creates intelligence
- Tokenization creates liquidity
- Stablecoins create trust
Together, they form the foundation of algorithmic capitalism, a system where value moves at the speed of thought, capital is globally accessible, and economic coordination happens in code.
The Market Structure Act isn’t just regulation. It’s the constitution of the next financial system.
As Jeremy Allaire put it:
“I won’t be happy until I can measure increased economic velocity and global prosperity from what we’re building.”
That’s the benchmark. Not speculation. Not hype.
Rewiring capitalism for the age of abundance.
The future of money won’t be decided by central banks alone, it will be co-authored by algorithms, code, and the policies that let them coexist.
For investors, policymakers, and entrepreneurs: understanding tokenization and stablecoins today is like understanding TCP/IP in 1994. It’s not just another product. It’s the rails everything else will run on.
If you found this valuable, share it with one person who needs to understand what’s coming. The window to act is closing fast.
And if this still feels abstract, think back to that first high-def Knicks game after years of fuzzy rabbit-ear TV. That’s where we are with money, staring at the old screen, not realizing the new one’s already on the wall.
www.LivingOffTheMarket.com
This is not investment advice. It is solely the opinion of Thomas Linzmeier and Livingoffthemarket.com
Tom is not a registered Investment Advisor.
