Arthur Hayes: Fed-Backed Yen Rescue Via FIMA Repo Facility Could Fuel BTC, Gold And ETH Rally

by
Alisa Davidson

Revealed: August 11, 2026 at 4:00 am Up to date: August 11, 2026 at 4:02 am

by Anastasiia O

Edited and fact-checked:
August 11, 2026 at 4:00 am

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BitMEX co-founder and head of crypto funding agency Maelstrom, Arthur Hayes, co-founder of BitMEX and head of crypto funding agency Maelstrom, has outlined a macroeconomic thesis centered on the potential revaluation of the Japanese yen and its cascading results on world greenback liquidity. 

In his newest essay he factors out that the yen stands as probably the most undervalued main foreign money, creating unsustainable tensions for Japan, the US, and China. Whereas typical options similar to aggressive Financial institution of Japan price hikes or large-scale repatriation of Japanese overseas belongings carry extreme market dangers—together with potential destabilization of U.S. 

Treasury and fairness markets—Arthur Hayes identifies a 3rd, politically most well-liked pathway: the utilization of the Federal Reserve’s International and Worldwide Financial Authorities (FIMA) repurchase facility.

Underneath this mechanism, Japan’s Ministry of Finance would pledge its substantial holdings of U.S. Treasuries—estimated at roughly $1.37 trillion throughout authorities and Authorities Pension Funding Fund (GPIF) accounts—to the Fed in trade for {dollars}. 

These {dollars} would subsequently be offered in overseas trade markets to buy yen, with the repatriated funds channeled into home Japanese authorities bonds and equities. 

Arthur Hayes contends that this operation would successfully develop the Federal Reserve’s stability sheet, injecting vital greenback liquidity into world markets with out forcing Japan to liquidate its U.S. securities outright. 

He notes that U.S. Treasury Secretary Scott Bessent has publicly advocated for elevating or eliminating the FIMA facility’s present $60 billion counterparty cap, suggesting that the political groundwork for such a maneuver is already being laid and that Fed Chair Warsh is more likely to accommodate the administration’s goals via the International Foreign money Subcommittee.

Crypto Market Implications and Strategic Positioning

Arthur Hayes argues that such stability sheet growth would create a extremely favorable setting for scarce financial belongings, notably Bitcoin, bodily gold, and Ether. 

Drawing parallels to the COVID-19 interval, when roughly $4 trillion in Fed liquidity correlated intently with Bitcoin’s worth appreciation, he anticipates {that a} renewed wave of greenback creation would primarily profit financial hedges somewhat than speculative know-how equities. 

Inside digital belongings, Arthur Hayes identifies Ether as a compelling large-cap alternative, citing its failure to breach 2025 all-time highs relative to friends and its rising position as a safety layer for real-world belongings. Moreover, he highlights Ethena (ENA) as a high-beta candidate, noting {that a} restoration in Bitcoin foundation yields may restore attractiveness to its USDe stablecoin product—at present the sixth-largest stablecoin by circulation—and probably drive vital token appreciation from deeply depressed ranges.

Whereas the exact timing relies on procedural adjustments to the FIMA facility, Arthur Hayes means that forward-looking positioning in these belongings is warranted, as underlying actions in gold and overseas trade could precede any official coverage announcement.

Alisa, a devoted journalist on the MPost, focuses on crypto, AI, investments, and the expansive realm of Web3. With a eager eye for rising developments and applied sciences, she delivers complete protection to tell and have interaction readers within the ever-evolving panorama of digital finance.

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