While Stablecoin competition warms up with imminent regulations in the United States, traditional financial institutions are noted – without fear of losing digital dollars, said Ben Reynolds, CEO of Bitgo des Stablecoins, at the 2025 consensus in Toronto.
Speaking during a round table, he said that Bitgo had recently launched Stablecoin-as-A-Service saw the “incredible” interest on the part of American banks and foreign banks wishing tokenize deposits or issue stablecoins.
“Many banks are only defensive – they are afraid of losing their deposits,” said Reynolds. “They look at the stablecoins and say: how are we not allowing ourselves to?”
The yield versions of stablescoins and tokenized money market funds have recently experienced rapid growth, but still represent only a fraction of the Stablescoin market of $ 230 billion.
Sam Broner d’A16z said that although stable yields are a promising market segment, their main use case concerns payments and transactions where users do not really care about yields. However, a short -term use case could be “collateral mobility” – the ability to instantly move money to meet obligations on different platforms.
“You cannot do a lot with a share of a money market fund,” said shining. “You have locking periods, a regulation of business hours and contracts that must be examined manually. Crypto gives you programmatic flexibility and without authorization.”
Stablecoins provided by yield could also be attractive for institutions, said Matt Kunke, Crypto product strategist at BlackRock. “If you are a DAO, a protocol or a market manufacturer, to move between Crypto Holdings on a scholarship and your brokerage account is slow and full of friction,” he said. “The stablecoins that carry the yield only reduce this drag.”
However, regulatory distinctions will shape the market. “A tokenized cash fund is a guarantee, and a real stablecoin is not,” he said. “They deserve fundamentally different markets.”
Joseph Saldana, a financial director of Wyoming Stable Token Commission, stressed that the yield generators have the power to expand investors’ access to the common investment funds which often have minimum investment limits which “block many people”.
“We want to serve the sub-banks and give wider access to the instruments we appreciate every day,” said Saldana.
