Banks and Crypto Battle Over Stablecoin Yields

A long-running standoff over whether stablecoin holders should earn yields continues to divide banks and crypto firms. The best rates on major exchanges such as Kraken, Gemini, and Coinbase currently sit at 3.5% to 3.75% for program participants, while banking representatives argue that factoring in the Federal Reserve's funds rate changes the picture.

Some industry leaders are calling for compromise. "There are some battles worth fighting for innovation, and there are some battles that are better ceded to build a durable regulatory framework," said Adrian Wall, Managing Director at a firm involved in the debate. "If resolving the yield question is what it takes to bring the banking sector into a broader consensus on market structure, that is a trade worth making."

Sources:

• The Stablecoin Yield Clash That Won't Go Away Has Banks, Crypto Battling Over Tradition