The CEO of one of the biggest payment platforms in the world is predicting that stablecoin technology will force traditional banks to evolve.
In a post on X, which was a response to a stablecoin analysis by investor Nic Carter, Stripe CEO Patrick Collison highlights how banks typically keep nearly all of the yield that is received on their customers’ money.
[adinserter block="1"]When stablecoins become more prominent, Collison says that will change.
“Yes, I think that stablecoin issuers are going to have to share yield with others, but this is just one instance. Everyone is going to have to share yield. Today, the average interest on US savings deposits is 0.40% (FDIC data), and $4T of US bank deposits earn 0% interest.* Things aren’t better in the EU: 0.25% average interest on non-corporate deposits; corporate deposits just 0.51%.** In my view, this is going to change: depositors are going to (and should!) earn something closer to a market return on their capital.
(Some lobbies are currently pushing, post-GENIUS, to further restrict any kinds of rewards associated with stablecoin deposits. The business imperative here is clear — cheap deposits are great — but being so consumer hostile feels to me like a losing position.)”
According to a recent report from The Information, Stripe is applying for the charter as a means of complying with new stablecoin legislation, allowing it to continue offering dollar-pegged crypto assets after the new law goes into effect.
Furthermore, Stripe announced today the launch of Open Issuance – a new product that would help businesses take advantage of artificial intelligence (AI) and stablecoins, which would allow firms to launch and manage their own dollar-pegged digital assets with just a few lines of code.
As stated by Will Gaybrick, Stripe’s president of technology and business,
“Across stablecoins and AI, Stripe’s role is to pull frontier technology out of the experimental and into the mainstream. With the advent of stablecoins and AI, we’re at the dawn of a new online economy. And we’re relentlessly focused on channeling its many opportunities to help our customers grow.”
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