U.S. Treasury interest payments have exceeded the $1 trillion mark. What does this historic moment mean for the 2025 fiscal year? Defense spending, healthcare—these once significant fiscal areas are now being heavily burdened by interest. Wall Street and the encryption community are wary of one word: "Weimar." The historical specter of hyperinflation and financial collapse is resurfacing.

More heartbreaking data is yet to come. The Congressional Budget Office predicts that cumulative Interest payments over the next decade will reach $13.8 trillion—doubling compared to the past twenty years (adjusted for inflation). The Federal Budget Committee is even more pessimistic: if tariffs and temporary measures continue, interest costs could soar to $2.2 trillion by 2035, an increase of 127% from now.

The debt-to-GDP ratio has reached the warning line of 100%. This line has not been crossed since World War II. According to the trajectory, it will exceed the historical peak of 106% in 1946 by 2029, ultimately reaching 118% in 2035. This is not just a numbers game – it signals a self-reinforcing dangerous cycle.

The federal government borrows about $2 trillion each year, nearly half of which is used to pay interest on the debt. Will a debt spiral really occur? The concerns of CRFB analyst Chris Tuner are not unfounded. The logic is brutal: if creditors have doubts about repayment ability, interest rates will soar; the higher the interest rates, the more money the government has to borrow to pay interest; the more it borrows, the more shaken creditor confidence becomes. Thus begins a vicious cycle.

In this context, there are voices suggesting that stablecoins may play a special role. The U.S. Treasury has begun to position them as strategic tools for absorbing government bonds. When traditional financing channels are under pressure, the liquidity and cross-border characteristics of stablecoins may open up new financing ideas. Regardless, this debt crisis is reshaping the global financial ecosystem—the value proposition of crypto assets stands out prominently at this moment.