Overview

• Stripe CEO Patrick Collison said banks will have to offer market-like returns to retain customers, contrasting U.S. average savings yields near 0.40% with higher returns available on stablecoin platforms.
• Standard Chartered analysts forecast roughly $1 trillion could shift from banks to stablecoins in vulnerable emerging markets over about three years, even without direct yield, and the U.S. Treasury has flagged up to $6.6 trillion in potential outflows in extreme cases.
• The stablecoin market has climbed past $300 billion since July, with DeFiLlama showing roughly $50 billion in added supply and PayPal’s PYUSD tripling since midsummer as some programs advertise around 4% in monthly rewards.
• The GENIUS Act, enacted in July, requires full-reserve backing and bans issuers from paying yield, but banking trade groups are pressing regulators and lawmakers to curb perceived loopholes that let affiliates or exchanges provide rewards.
• Examples of non-issuer incentives include 3%–4% lending returns on platforms like Aave for USDT and USDC and Coinbase’s promoted USDC rewards, while investors and executives say Big Tech could enter the space to compete for retail deposits.