Arthur Hayes, co-founder of BitMEX and a prominent crypto thought leader, has declared that traditional finance (TradFi) is now pivoting toward what he calls the “debasement trade.” According to Hayes, major banks and institutions are preparing to aggressively sell gold, crypto, and tech derivatives to clients—marking a massive shift in strategy after nearly two decades of avoidance.
The “debasement trade” refers to investing in hard assets and high-growth tech as a hedge against currency devaluation and monetary inflation—particularly in a world where central banks continue to print money and real rates remain uncertain.
Why the ‘Debasement Trade’ Matters Now
Hayes argues that the macro environment is pushing TradFi institutions into uncharted territory. With sovereign debt levels rising, inflationary pressure persistent, and fiat currencies under stress, investors are looking for protection. This is where the debasement trade comes in—allocating capital to assets like Bitcoin, gold, and AI-driven tech, which are believed to outperform during periods of fiat erosion.
Banks that previously discouraged exposure to these “risky” assets are now shifting tone. Hayes believes that Wall Street will soon not just tolerate but actively promote these investments to their clients, especially high-net-worth individuals and institutional funds.
LATEST: BitMEX co-founder Arthur Hayes says TradFi's new narrative is the "debasement trade."
— Cointelegraph (@Cointelegraph) October 9, 2025
He expects banks to sell gold, crypto, and tech derivatives to clients after nearly 20 years. pic.twitter.com/ilvrisG3dq
A New Narrative After 20 Years
For nearly 20 years, traditional finance has favored conservative plays—government bonds, blue-chip stocks, and managed funds. But Hayes says this is changing fast. With economic cracks showing and public trust in central banks weakening, the debasement trade may become the dominant market narrative for the coming years.
Crypto investors are already familiar with this idea, but its adoption by TradFi could dramatically expand capital inflows into Bitcoin, Ethereum, gold ETFs, and emerging tech sectors.