Yield-bearing stablecoins will force traditional banks and legacy financial institutions to offer customers real yield on their deposits.
Stablecoins, tokenized versions of fiat currencies that move on blockchain rails, will eventually force banks and other financial institutions to offer customers yields on their deposits to remain competitive, according to Patrick Collison, CEO of payments company Stripe.
The average interest rate for US savings accounts is 0.40%, and in the EU, the average rate on savings accounts is 0.25%, Collison said in response to VC Nic Carter’s X post outlining the rise of yield-bearing stablecoins and the future of the sector. Collison added:
The business imperative here is clear — cheap deposits are great, but being so consumer-hostile feels to me like a losing position,” he continued.
