• Arthur Hayes, the former CEO of BitMEX exchange proposed the creation of a stablecoin NakaDollar that has no ties to fiat currencies or banks. 
  • The NakaDollar would be pegged to the sum of $1 worth of Bitcoin and one BTC/USD inverse perpetual swap. 
  • The equation allows the creation of a synthetic USD equivalent without touching the fiat banking system or existing stablecoins. 

Stablecoins and firms issuing these assets have faced increasing scrutiny from regulators over the past few weeks. To tackle the growing concerns, the former BitMEX CEO proposed the creation of a stablecoin, NakaDollar that is completely independent of fiat currencies and the banking system. 

Also read: Silk Road Bitcoins worth $1 billion move to Coinbase, another sell-off on the horizon?

Arthur Hayes proposes creation of synthetic US Dollar equivalent stablecoin

Fiat-based and US Dollar-pegged stablecoins have drawn intense scrutiny from regulators. US financial regulators are investigating stablecoin issuers like Paxos, raising concerns regarding the utility and relevance of assets pegged to the US Dollar. 

Arthur Hayes, the former CEO of BitMEX and founder of the 100x Group, proposed an alternative to the stablecoin ecosystem’s challenges: dependence on fiat currencies like the US Dollar and the banking system. 

Hayes proposed the Satoshi Nakamoto Dollar (NakaDollar), a new stablecoin that relies exclusively on Bitcoin and BTC/USD Inverse Perprtual Swaps on centralized derivatives exchanges. 

1 NUSD = $1 of Bitcoin + Short 1 Bitcoin / USD Inverse Perpetual Swap

This eliminates the need for the banking system and fiat currencies altogether, pushing the crypto economy towards a Bitcoin native solution to current challenges. 

Why NakaDollar and why now?

Hayes chose a time when crypto-friendly Silvergate bank chose to voluntarily liquidate. The bank is looking for ways to shore up its liquidity after a slew of cryptocurrency firms left the financial institution. 

As the Silvergate saga unravels, cryptocurrency exchanges have distanced themselves from the bank and this has hit the inflow and outflow of fiat currencies from the crypto ecosystem. Crypto clients relied on Silvergate for processing deposits and withdrawals, recent circumstances have resulted in severed ties and a disruption of the process for market participants. 

Hayes proposed his stablecoin, free from the banking ecosystem and the US Dollar at a time when crypto firms are looking for an alternative. 

Is NakaUSD a good alternative to stablecoins like Tether, USDC?

Mindao Yang, the co-founder of decentralized lending and borrowing protocol dForce Network believes Hayes’ proposition is a long theorized idea. Yang argues that it is inherently flawed to assume Bitcoin’s Open Interest (OI) could keep up with NUSD minting, it is contradictory to the inevitability that BTC’s OI dominance keeps on declining. 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Japan mulls lifting Bitcoin ETF ban, slashing taxes on crypto gains

Japan mulls lifting Bitcoin ETF ban, slashing taxes on crypto gains

Japan's Financial Services Agency has proposed a rule change to bring crypto assets under the jurisdiction of the Financial Instruments and Exchange Act. The proposal, to be reviewed on June 25, could pave the way for the listing of Bitcoin ETFs.

Bitcoin recovers as Iran-Israel ceasefire fuels risk-on sentiment

Bitcoin recovers as Iran-Israel ceasefire fuels risk-on sentiment

Bitcoin price stabilizes around $105,000 on Tuesday after a 4.33% gain on Monday, driven by easing geopolitical and regulatory concerns. Global risk appetite is increasing as the ceasefire between Iran and Israel, along with the Fed's softer stance on crypto-related banking, takes hold.

Crypto Today: Bitcoin, Ethereum, XRP consolidate gains after Israel-Iran ceasefire 

Crypto Today: Bitcoin, Ethereum, XRP consolidate gains after Israel-Iran ceasefire 

Tensions in the Middle East have taken the backseat after US President Donald Trump announced a ceasefire between Israel and Iran on Monday. Global markets, including cryptocurrencies, ticked up, boosting BTC's recovery above $105,000 at the time of writing on Tuesday.

Pi Network Price Forecast: Minor recovery teases trend reversal amid GenAI claims, Pi2Day

Pi Network Price Forecast: Minor recovery teases trend reversal amid GenAI claims, Pi2Day

Pi Network edges higher on Tuesday, holding above a crucial psychological and trendline support. The Pi Core team teases a potential Generative AI feature to be announced on Pi2Day, June 28.  

Bitcoin Weekly Forecast: The calm before the storm

Bitcoin Weekly Forecast: The calm before the storm

Bitcoin (BTC) price remains steady above a key support level, trading slightly above $106,000 at the time of writing on Friday. The uncertainty looms as geopolitical tensions between Iran and Israel show no sign yet of an exit strategy from either side.

The Best brokers to trade EUR/USD

The Best brokers to trade EUR/USD

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

BTC

ETH

XRP