2026-01-15 14:29:15

Why Traditional Banks Push Back on Stablecoin Yields

Here's the thing—banks aren't shy about their resistance to yield-bearing stablecoins. The reason? It threatens their core business model.

When stablecoins offer competitive returns, capital flows elsewhere. Users get stable value *and* earnings without traditional intermediaries. That's the nightmare scenario for legacy finance.

Banks built their empire on hoarding spread between deposit rates and lending rates. Stablecoins disrupt this completely. A 5% yield on USDC or USDT becomes far more attractive than a 0.5% savings account. Suddenly, the question isn't "should I keep money in a bank?" but "why would I?"

It's not really about technology. It's about whose pocket the yield comes from. When you remove the middleman, you remove their cut.

USDC0,03%

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SerumSquirrel

· 5h ago

Basically, banks are just scared stiff, and as soon as stablecoin yields appeared, their decades-old livelihood was instantly gone.

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AlwaysAnon

· 6h ago

NGL, banks simply don't want to see stablecoins take away their business. Basically, it's a fight over interests.

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FadCatcher

· 6h ago

NGL, these bank folks are just scared. The good days of traditional finance are really coming to an end.

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GateUser-2fce706c

· 6h ago

I've said it before, once this wave of stablecoin yield peaks and takes over, traditional finance will be completely revolutionized. Five points versus half a point—anyone can do the math. The banks' days are already counting down. While others are fearful, I am quietly positioning myself. Those still clinging to bank cards are truly out of touch.

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