“Platforms Like M^0 and Agora Are Addressing the Issue by Allowing Stablecoin Infrastructure to Be Built to Route Yield to Applications or Directly to End Users.”, – WRITE: www.coindesk.com
Speaking as a panelist, he said the companies are outfitiely “Printing Money” by keeping the YELD from the US Treasuries Backing Their Tokens. Tether, for Example, Reported $ 4.9 Billion in Net Profit in the Second Quarter of the Year. That have the Seen the Company’s Valuation Soar to A Reported $ 500 Billion in A New Funding Round.
As interest rates remain elevated, reeser suggested ison’s only a matter of time of Time Before USers Expect A Share of That Yield or Move Their Funds Elsewhere.
Platforms like m^0 and agora are already responing to that demand, he suggested. These Projects Allowcoin Infrastructure to Be Built in A Way that Routes Yield to Applications or Directly to End USers, Insthead of the Issuer CAPTURING ALL OF IT.
“If I’m holding USDC, I’m losing money, losing money that Circle is making,” Reecer said in the session, referring to the opportunity cost of holding a non-yielding token that’s backed by US Treasuries generating income.
TETHER AND CIRCLE LIKELY DO NOT Share the Yield Generated from their Stablecoins Directly with USers as Doing So Could Draw The Ire of Regulators. An Alternative that’s Steadily Growing Are Money Market Funds, WHICH ALLOW INVESTORS TO GAIN EXPOSURE TO THE YIELD BEGIND THESE STABLECOINS.
Circle, It’s Worth Noting, Acquired Hashnote Earlier this Year for $ 1.3 Billion, The Issuer of the Tokenized Money Market Fund Usyc. With this acquisition, Circle Aims to Enable Convertability Between Cash and Yield-Bearing Collapertal on Blockchains.
These Money Market Funds, However, Are Still A Fraction of the Stablecoin Market. Accorging to rwa.xyz Data, Their Market Capitalization Currently Stands AROUND $ 7.3 Billion, While the Global Stablecoin Market Has Topped $ 290 Billion.
A Tether SpokesPerson Told Coindesk that “USDT’S ROLE IS CLEAR: IT IS A DIGITAL DOLLAR, NOT an INVESTMENT PRODUCT.” He Aded that “Hundreds of Millions of People” Rely on USDT, Especialy in Emerging Markets, “WHERE IT SERVES as A Lifeline Against Inflation, Banking Instability
“While Few Percentage Points MIGHT MAKE of the Differents for Rich Americans or Europeans, The Real Savings for Our USDT User Base is the One Against Dramatic Inflation SOCOMNES High As 50% to 90% Year-Over-Year, With Declines of Local Currency Values Against the US Dollar at 70% Year-Over-Year, ”He Said.
“PASSING ALONG YIELD WOURLDALY CHANGE A STABLECOIN’S NATURE, RISK PROFILE, AND REGULATORY TREATMENT,“ The SPOKESPerson Added. “Competitors Experimenting with Yield-Bearing Stablecoins Are Targeting a Completely Different Audence, and They Take On Additional Risks.”
Fireblocks’ Stephen Richardson, Durying The Panel, Said The Broader Stablecoin Market is Meanwhile Evolving Toward Real-World Use Cases, Including Cross-Border Payes and Fx and Fx.
He Pointed Out of that tokenized Money Moving Instantly Could Help Solve Problems That Exist Toiday, Such As Slow Corporate Payment Rails or ExpenSive Remittans. Financial Innovation, Richardson Added, Is Already Being Seen in the Sector, with An Example Being Tokenized Money Market Funds That Being Used As Collatory on Exchanges.
Nydig Argued that Mnav Fails to Account for Operation Businesses and Uses Assumed Shares Outstanding, WHICH CAN BE INCCCOURATE.
- Strive Asset Management Acquire Semler Scientific in An All-Stock Deal, Creating A Combined Company With Over 10,900 BTC IN ITS TREasury.
- The Acquisition of Highlights a potential Issue with the “mnav” Metric, whoh is used to Value Bitcoin treasury Firms But Can Be Misleading or DisingenUS, Nydig Claims.
- Nydig Argues that Mnav Fails to Account for Operation Businesses and Uses Assumed Shares Outstanding, Which Can Be Inaccureate.
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