Stablecoin giants such as Tether and Circle benefit from the current high -interest rate environment, while Stablecoin headlines do not see any of the returns, said Wormhole co -founder, give Reeo, in the DAC 2025 Bitcoin DAC 2025 event.
Speaking as a panelist, he said that companies are “printing money” effectively by maintaining the performance of the United States Treasury bonds that support their tokens. Tether, for example, reported $ 4.9 billion in net earnings in the second quarter of the year. That has seen that the company’s valuation rises to $ 500 billion in a new financing round.
As interest rates remain raised, Reeo it suggested that it is only a matter of time before users expect a part of that performance or transfer their funds to another place.
Platforms such as M^0 and Agora are already responding to that demand, he suggested. These projects allow Stablecoin infrastructure to be built in a way that routs the performance of applications or directly to end users, instead of the issuer that captures everything.
“If I am holding the USDC, I am losing money, losing money that Circle is earning,” he said in the session, referring to the opportunity cost of having a not won token backed by US treasures that generate income.
Tether and Circle probably do not share the performance generated from their stablecoins directly with users, since doing so could attract the anger of regulators. An alternative that is growing constantly are the funds of the money market, which allow investors to obtain exposure to performance behind these stable.
It is worth noting Circle, Hashnote acquired earlier this year for $ 1.3 billion, the USYC tokenized monetal market fund issuer. With this acquisition, Circle aims to allow convertibility between cash and blockchains performance guarantee.
However, these funds from the money market remain a fraction of the Stablecoin market. According to Rwa.xyz data, its market capitalization currently costs around $ 7.3 billion, while the Stablcoin world market has exceeded $ 290 billion.
A Tether spokesman told Coendesk that “USDT’s role is clear: it is 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 lifeguard against inflation, bank instability and capital controls.”
“While few percentage points can make a difference for American or European rich, real savings for our USDT user base is a dramatic inflation so common in developing countries, often reaching numbers of up to 50% to 90% year after year, with decreases in local monetary values against the US dollar 70% year after year,” he said.
“Passing the performance would fundamentally change the nature, risk profile and regulatory treatment of a stablecoin,” added the spokesman. “The competitors who experience with performance stable are pointing to a completely different audience, and assume additional risks.”
Stephen Richardson, from Fireblocks, during the panel, said that the broader market of Stablecoin is evolving towards real -world use cases, including cross -border payments and FX services.
He pointed out that the tokenized money that moves instantly could help solve problems that exist today, such as slow corporate payment or expensive remittances. Financial innovation, Richardson added, is already being seen in the sector, with an example of tokenized monetary market funds that are used as a guarantee in exchanges.
