Greg Kidd's Strategic Shift Toward Bitcoin and Stablecoins: Rethinking Institutional Asset Allocation in a Post-Crisis Era

In the wake of the 2023 crypto market crash and the lingering effects of the 2008 financial crisis, institutional investors are rethinking traditional asset allocation frameworks. Greg Kidd, a fintech investor and former Ripple Chief Risk Officer, has emerged as a pivotal figure in this evolution. Through his acquisition of Know Labs and its rebranding to USBC, Inc., Kidd has spearheaded a bold strategy centered on Bitcoin treasuries, stablecoins, and U.S. Treasury securities—offering a blueprint for institutional portfolios in a post-crisis landscape.

The Bitcoin Treasury Play: A New Store of Value

Greg Kidd's most audacious move came in June 2025, when his affiliate, Goldeneye 1995 LLC, acquired an 81% stake in Know Labs. The deal injected 1,000 Bitcoin (valued at $105 million) and $15 million in cash into the company, rebranding it as USBC, Inc. Greg Kidd to Acquire Controlling Interest in Know Labs and Introduce Bitcoin Treasury Strategy^[1]. This Bitcoin treasury now constitutes 82% of USBC's $128 million market capitalization, positioning the cryptocurrency as the core asset on its balance sheet Know Labs’ Bitcoin Treasury Strategy Is A Bold Move That Could Redefine Its Financial And Market Identity^[2]. The strategy mirrors Michael Saylor's approach at MicroStrategy, leveraging Bitcoin's long-term appreciation potential as a hedge against inflation and currency devaluation Greg Kidd Plans Bitcoin Treasury Strategy After Acquiring Controlling Stake in Known Labs^[3].

This move reflects a broader trend: institutional adoption of Bitcoin as a store of value. According to a report by Coinotag, USBC's yield-generation treasury strategy—managed by Hyrcanian Asset Management—aims to generate returns through staking, lending, and other on-chain activities Greg Kidd & Know Labs Announce Closing of $125M Strategic Acquisition^[4]. By treating Bitcoin as a primary asset, Kidd is normalizing its role in corporate finance, challenging traditional notions of liquidity and risk management.

Stablecoins and the U.S. Treasury Nexus

While USBC's Bitcoin treasury grabs headlines, the company's stablecoin ambitions are equally transformative. USBC plans to launch a U.S.-dollar-denominated token, the “USBC token,” which will operate on blockchain technology and offer high-yield rewards Know Labs Transforms: Greg Kidd's $125 Million Strategic Acquisition Pivots Company to USBC^[5]. This aligns with a growing demand for stablecoins, which now hold $250 billion in reserves, 80% of which are backed by U.S. Treasuries How the $250 Billion Stablecoin Market Became a Pillar of U.S. Debt^[6].

The interplay between stablecoins and Treasury securities is critical. As highlighted by the Kansas City Federal Reserve, stablecoin inflows can reduce 3-month T-bill yields by 2–2.5 basis points within 10 days, while outflows can push yields up by 6–8 basis points Stablecoins and Treasuries: A Fragile Funding Link Investors Can’t Ignore^[7]. This dynamic creates a feedback loop between stablecoin flows and Treasury market liquidity, amplifying institutional demand for short-term debt. The proposed GENIUS Act, expected to pass in 2025, further solidifies this link by requiring stablecoin reserves to be tied to U.S. Treasuries Why Stablecoins May Surpass China In U.S. Treasury Holdings By 2028^[8].

U.S. Bank, meanwhile, has resumed cryptocurrency custody services for institutional clients, including Bitcoin ETFs, and is exploring joint stablecoin projects with peers like JPMorgan and Citigroup U.S. Bank Resumes Bitcoin Cryptocurrency Custody Services for Institutional Investment Managers^[9]. While these initiatives are separate from USBC's strategy, they underscore a sector-wide shift toward digital assets. The bank's focus on stablecoins as a regulated alternative to private tokens like Tether highlights the growing institutional appetite for dollar-backed instruments U.S. Banks Plan Joint Stablecoin^[10].

Risks and Rewards in a Post-Crisis Framework

Kidd's strategy is not without risks. Bitcoin's volatility exposes USBC to significant price swings, while stablecoin redemptions could trigger a “dash for cash” during market stress, as seen in March 2020 Will Stablecoins Impact the US Treasury Market?^[11]. Additionally, the concentration of stablecoin reserves in U.S. Treasuries raises macroprudential concerns, including potential systemic risks during a liquidity crunch Stablecoins Could Increase Treasury Demand, but Only by …^[12].

However, the benefits are compelling. By integrating Bitcoin and stablecoins into its treasury, USBC is diversifying its asset base and capitalizing on the digital dollar ecosystem. The company's debt cleanup—repaying $2.4 million in obligations—further strengthens its balance sheet, enabling a strategic pivot toward yield generation Know Labs Transforms: Greg Kidd's $125 Million Strategic Acquisition^[13]. For institutional investors, this model offers a hybrid approach: leveraging Bitcoin's growth potential while maintaining liquidity through stablecoin-linked Treasuries.

Conclusion: A New Paradigm for Institutional Allocation

Greg Kidd's transformation of USBC, Inc. exemplifies the rethinking of institutional asset allocation in a post-crisis era. By anchoring the company's value to Bitcoin and stablecoins, he is bridging the gap between traditional finance and digital assets. While U.S. Bank's parallel efforts in custody and stablecoin development highlight the sector's broader momentum, Kidd's focus on USBC underscores the potential for niche players to disrupt established norms.

As the stablecoin market projects to grow to $2 trillion by 2028, institutions must weigh the risks of volatility and regulatory uncertainty against the rewards of diversification and yield. For now, USBC's bold experiment—and the broader institutional shift it represents—offers a glimpse into the future of asset allocation: one where Bitcoin, Treasuries, and stablecoins coexist in a dynamic, interconnected ecosystem.