Stablecoins promised safety, but without compliant yield, savers in inflation-hit markets lose value. CTO lessons on why DeFi lending survived, CeFi failed, and where safe yield might emerge.
AI agents already want to transact with one another, but current financial rails block them. Stablecoins may solve storage, but intelligence layers will unlock real-time, global payments.
The GENIUS Act delivers regulatory clarity for stablecoins in the U.S., but at a cost. By eliminating yield on reserves, it destroyed the business model that sustained issuers like Circle. The float has not disappeared, it has shifted offshore, to banks, and into new fee structures. This change may crown Tether king of emerging markets and force U.S. issuers to reinvent themselves.
Banks are unlikely to issue stablecoins directly. Patents, regulations, and compliance costs make it unattractive. Instead, banks will position themselves as infrastructure providers, capturing stablecoin economics through custody, settlement, and creative fee structures while leaving issuance to players like Circle.
