At 14, he took a job at a trading company on the island of St Croix. His duties included handling cargo, accounts and correspondence.
The teenager was soon in charge of the business while his bosses were away at sea. He wrote with clarity and read widely.
The little island of Nevis was too small for his plans. He dreamed of escape.
A natural disaster put it in the spotlight. In 1772, a ferocious storm tore through the region. Hamilton, then just 17, wrote a vivid letter in the papers describing the devastation. The letter was published in the local newspaper. The island’s merchants were so impressed that they raised money to send him to King’s College (now Columbia University).
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The penniless, illegitimate orphan arrived on the American mainland with nothing but ambition. He soon became an aide to George Washington during the Revolutionary War. After the war, he started the US Treasury, which formed the bedrock of America’s success.
His financial instincts are essential for the new asset class. Stablecoins are a type of digital currency designed to maintain a stable value. They are linked to a stable entity, such as the US dollar. Their price doesn’t fluctuate like other cryptocurrencies.
Some stablecoins have had a torrid time. In 2022, TerraUSD (UST) collapsed, wiping out US$45 billion. The issuer of TerraUSD, Terraform Labs and its co-founder, Do Kwon, faced severe consequences after the collapse. He went into hiding and was arrested in Montenegro.
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Most stablecoins are backed by real assets, such as US dollars. UST was an algorithmic stablecoin. This event shook confidence in stablecoins and led to calls for tighter regulation. It led to legislation like the Genius Act of 2025.
Stablecoins received a massive boost last month. On June 17, the US passed the Genius Act, which brought clear rules to stablecoins. Stablecoin issuers, such as Circle, have seen a 75% increase in value since the Act was passed.
There are three lessons for stablecoins from the founder of the US Treasury.
First, in 1790, Hamilton proposed that the US assume the debts of the 13 states. He also proposed the creation of a national bank backed by government credit and hard assets. The aim was to restore trust in the fragile and fledgling US economy.
Like the US dollar in its infancy, stablecoins must be backed by a credible asset. This would mean reserves in US Treasuries, cash or other liquid assets. It should not be volatile cryptocurrencies or tokens based on algorithms, such as Luna. Trust begins with tangible collateral.
Second, Hamilton believed that the value of money comes not just from what backs it. It comes from what people believe backs it. His genius lay in making US credit appear unbreakable. The TerraUSD collapse wasn’t a coding failure. It was a crisis of confidence. Stablecoin issuers must earn trust through transparency and regular audits. In Hamilton’s world, perception was policy. In crypto, perception is price.
Third, Hamilton used regulation not to stifle markets, but to stabilise them. He created an institution grounded in the rule of law. He was a financial moderniser, not a market minimalist.
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The Genius Act of 2025 mandates full backing and audits for stablecoins. It does not kill innovation. It saves it from self-destruction like the Luna collapse. Crypto doesn’t need fewer rules. It needs better ones.
Stablecoins have now gained legitimacy. Circle’s stock has skyrocketed since going public in May. A consortium of banks, including JPMorgan Chase, Wells Fargo and Citigroup, is planning to offer stablecoins in concert. Charles Schwab offers margin loans against crypto ETFs.
BNY Mellon is a bank that was founded in 1784 by Hamilton. It is a major provider of stablecoin infrastructure.
US$10 bills may soon become obsolete. The influence of the man on these notes will outlive cash.
Nirgunan Tiruchelvam is head of consumer and internet at Aletheia Capital and author of Investing in the Covid Era
