Institutional capital flows through the path of least resistance, and OSL Group just opened the floodgates to China's sanctioned AI and semiconductor industries. TLDR; when you see the volume of USDGO(U.S. Treasuries) increasing while the U.S. stock market stagnates, it's the smoking gun that capital is fleeing the U.S.
In case you are not up to speed, OSL Group may as well be Ant Group, Alibaba, using Antalpha to custody XAUT (digital gold, settled in Hong Kong). Antalpha is the financial arm of Bitmain (hello Bitcoin).
OSL Group announced the launch of USDGO, a stablecoin backed by U.S. Treasuries and issued via Anchorage Digital Bank (a U.S. chartered bank).
These are not for retail HODLers, these are enterprise grade settlement layers for institutions.
Entities can hold USDGO ("stable", treasury backed) for settlement, then pivot into XAUT (gold backed) via Antalpha for long term reserves that are harder to seize or sanction than pure USD. It's a dual engine liquidity system that bypasses traditional SWIFT based restrictions.
USD and USD stablecoins can be frozen by the U.S. Treasury at the issuer level. If that capital is pivoted into XAUT and then redeemed for physical gold via Antalpha, the paper trail to a U.S.-controlled bank account is severed.
It turns the U.S. Treasury market into the very thing funding its own replacement. I call it, "How to use American tax payers as insurance for your global exit strategy."