DON'T MISS THIS!!: The $600B Crypto Deal Turning Bitcoin Into a Weapon

May 20, 2025

Something big is happening.

This is the start of a new financial order, and if you understand how capital actually moves, you know this could break Bitcoin.

We’re not talking about hype. We’re talking about sovereign-level capital flows, the kind that shift markets for decades.

A $600 billion US-Saudi deal. A Trump-backed stablecoin pushing $2 billion through Binance. A $4 trillion Gulf war chest rewiring its capital strategy.

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This note isn’t about theory. It’s about strategy, mechanics, and math. If you’re serious about investing in Bitcoin, you need to understand this.

The Old System: Petrodollars and Treasuries

For decades, the cycle looked like this:

Gulf sells oil
USD pours in
That money buys US Treasuries
The US funds its deficit, and everyone’s happy

That system is unraveling. Fast.

As US debt climbs past $34 trillion, Treasury yields barely beat inflation. The Fed’s balance sheet is bloated. And most importantly, the US is losing its geopolitical goodwill in the Gulf.

Saudi Arabia has already signaled it may not renew its petrodollar deal with the US. The UAE is pushing for de-dollarization. Qatar is investing directly into strategic tech and crypto infrastructure.

The result? That massive Gulf surplus is no longer automatically flowing into US bonds. It’s looking for better yield, more control, and long-term upside.

The Gulf’s $4 Trillion War Chest

Let’s zoom in on the scale:

Abu Dhabi Investment Authority: ~$993B
Kuwait Investment Authority: ~$803B
Qatar Investment Authority: ~$475B
Public Investment Fund (Saudi): ~$925B
Mubadala (UAE): ~$276B

These five alone manage over $3.4 trillion. And when you add up the rest (family offices, private funds, cash-rich corporates), the number gets closer to $4 trillion.

These funds aren’t VC tourists. They’re long-term allocators. They don’t buy based on hype. They buy based on access, compliance, custody, and returns.

And now, for the first time, Bitcoin checks all four boxes.

The Infrastructure Is Live

In May 2024, a major change happened quietly.

Trump, standing beside the Saudi Crown Prince, announced a $600 billion bilateral investment push. On paper, it's defense and tech.

But behind the scenes, it’s capital redirection.

Shortly after, World Liberties (linked to the Trump family) launched USD1—a regulated, fully KYC'd stablecoin designed for compliant capital movement. At Token2049 in Dubai, Zack Wickoff confirmed USD1 had just moved $2 billion from MGX (a Gulf investment arm) to Binance.

No routing through JPMorgan. No Swift. Just straight from sovereign wealth to crypto exchange.

That wasn’t a trial run. That was production scale.

Bitcoin Is Now a Strategic Asset

Forget the narratives of Bitcoin as a speculative gamble or an anti-government tool. For the Gulf, Bitcoin is becoming a strategic asset for:

Wealth preservation: Dollar debasement is real. Bitcoin’s scarcity matters.
Energy monetization: The Gulf controls oil. Bitcoin lets them monetize stranded energy into digital reserves.
Geopolitical leverage: By accumulating Bitcoin, Gulf states gain leverage in a multipolar financial system.

And the best part? They can accumulate without moving markets—yet.

Five Open Channels for Gulf Bitcoin Allocation

Spot ETFs
- Mubadala already owns $400M+ of BlackRock’s IBIT ETF.
- ETFs allow direct exposure with institutional-grade custody.
- Other funds are watching. When BlackRock clears compliance, others follow.
OTC Accumulation
- Large positions are built over-the-counter.
- Firms like Galaxy and Brevan Howard help execute billion-dollar trades without spooking the market.
- Custody is handled by regulated players like Zodia or Anchorage.
Stablecoin Settlement
- USD1 shows that stablecoins can move billions with audit trails.
- Next step: an AED-backed stablecoin (already in test phase) will enable Gulf trade to settle digitally.
- Trade float can then sweep into BTC reserves.
Mining
- Abu Dhabi is running 200MW of Bitcoin mining capacity.
- Energy that was once flared is now monetized as digital assets.
- That means Gulf countries are producing Bitcoin—not just buying it.
Private Allocation and VC
- Family offices are investing in early-stage crypto.
- From infrastructure plays to custody tech, the Gulf is getting a stake in the foundation.

Putting It in Perspective

Let’s model this simply:

1% of $4T = $40B in capital
OTC accumulation = $10B more
Mining yield = $2B/year by 2026
Trade float sweep = $2B/year

Total: ~$55B in new Bitcoin demand, likely under the radar.

For comparison:

Bitcoin’s monthly spot volume is ~$60B
Daily issuance is ~~900 BTC (~~$63M at $70K)

If even a fraction of this Gulf capital moves on-chain, it’ll absorb daily supply without blinking.

This could be bigger than the halving.

The Stablecoin Angle: Watch This Space

The UAE clears $1.4 trillion in trade annually.

If even 3% of that moves through AED stablecoins, that’s $42 billion of float capital that can be actively managed.

Traditionally, that money sits in bank accounts. In a tokenized system, it can be deployed dynamically—some of it into BTC, some into USDC yield protocols, some into tokenized treasuries.

This is the part people are missing: stablecoins aren’t just for payments. They’re programmable capital.

And when stablecoin capital is managed by sovereign wealth offices, BTC becomes the digital reserve asset of choice.

What to Watch for Next

More ETF Filings: Saudi and Qatari funds are likely exploring Bitcoin exposure via regulated structures. Once one files, the rest follow.
State-backed Exchanges: Abu Dhabi is rumored to be backing a fully regulated exchange. If they launch, capital will have a compliant home.
Tokenized Oil Contracts: If oil is invoiced in AED tokens, BTC becomes the settlement buffer.
Public Statements: When the first Gulf fund openly discloses Bitcoin holdings, it’ll be a signal. The floodgates will open.

This Isn’t About Retail FOMO. It’s About Capital Gravity.

This time, the market won’t spike because of Elon’s tweets or ETF hype. It’ll spike because sovereign money is quietly snapping up supply.

And if you’re only watching Coinbase or Twitter, you’ll miss it.

The Gulf is building the financial plumbing to dominate the next Bitcoin supercycle.

This is how wealth moves before the headlines catch up.

Stay sharp.

DON'T MISS THIS!!: The $600B Crypto Deal Turning Bitcoin Into a Weapon