Stablecoin Yield Model Faces Pressure as Big Tech and Payments Enter Market

The stablecoin business is entering a new phase as the long-standing model of issuers capturing most of the yield on customer-backed reserves comes under growing pressure—from crypto-native challengers to global payment giants—and is beginning to ripple through public markets.

At the center of the debate is a simple question that has increasingly shifted from technical trust to economic fairness: if stablecoins function as a kind of ‘digital dollar’ built on user deposits, who should benefit from the interest generated when those dollars are invested in short-term U.S. Treasuries and other…  Read more

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