Stablecoin giants like Tether and Circle take advantage of the current high interest rate environment while stable holders see none of the yields, said the co-founder of Wormhole, Dan Reecer, during the DAC 2025 event of Mercadoin Bitcoin.
Speaking as a panelist, he said that societies “print money” keeping the yield of American treasury bills supporting their tokens. Tether, for example, said $ 4.9 billion in net profit in the second quarter of the year. This has seen the company’s assessment rise to $ 500 billion in a new financing cycle.
While interest rates remain high, Reecer suggested that it is only a matter of time before users are waiting for a share of this yield or to move their funds elsewhere.
Platforms like M ^ 0 and Agora are already responding to this request, he suggested. These projects make it possible to build a Stablecoin infrastructure in order to be built so as to give up applications or directly to end users, instead that the transmitter captures everything.
“If I have USDC, I lose money, I lose money that Circle wins,” said re -receiving during the session, referring to the opportunity cost of the holding of a non -overturned token which is supported by American treasury vouchers.
Tether and Circle probably do not share the yield generated directly from their stablecoins with users, as it could be angry with regulators. An alternative that increases regularly is the money market funds, which allow investors to expose themselves to the yield behind these stablecoins.
Circle, it should be noted, has acquired hashnote earlier this year for $ 1.3 billion, the transmitter of the USYC token monetary market. With this acquisition, Circle aims to allow the convertibility between the guarantees in cash and in efficiency on the blockchains.
These money market funds, however, are still a fraction of the Stablescoin market. According to Rwa.xyz Data, their market capitalization currently amounts to around $ 7.3 billion, while the world market for Stablescoin exceeded $ 2,00 billion.
A spokesperson for Tether told Coindesk that “the role of the USDT is clear: it’s a digital dollar, not an investment product”. He added that “hundreds of millions of people” depend on the USDT, especially in emerging markets, “where it serves as a rescue against inflation, banking instability and capital controls”.
“Although few percentage points can make a difference for the rich Americans or Europeans, the real economy for our user base of the USDT is that against dramatic inflation so common in developing countries-often reaching figures that reach 50% to 90% from one year to the next, with a drop in local money values against the US dollar to 70% from one year to the other,” he said.
“The transmission of yield would basically change the nature of a stablecoin, risk profile and regulatory treatment,” added the spokesperson. “Competitors experimenting with stablescoins causing the yield targeting a completely different audience, and they take additional risks.”
Stephen Richardson, of Fireblocks, during the panel, said that the wider market of stablescoin is being evolved towards real world use, including cross -border payments and FX services.
He stressed that moving to tokenized could instantly help solve problems that exist today, such as slow business payment rails or expensive funds. Financial innovation, added Richardson, is already seen in the sector, with an example being tokenized monetary market funds which are used as guarantee on exchanges.
