It might say something about the importance of the network effect. The extra 3% wouldn't mean much if nobody accepted your token for payment.
don't be stupid. if usdt yields 4%, the interest earned will go to the owners of the company, not the coin holders, two different groups, no one is wiser.
Completely agree. But its like this with anything new. There is the new mover advantage, but then everyone is after you and competition heats up. Tesla cars for example are shit these days in comparison to the Chinese models. And Tesla used to be the only game in town.
I can’t find anything from 2025 proving RK is still holding GME. I think he bailed, his wife was a gifted GS banker and I doubt she would be thrilled in GME’s potential. Do you have any SEC forms showing his ownership?
True, but a currency is only useful if others accept it. Teslas still have value (as a form of transportation) even if the Chinese cars are better. It may be that other tokens can only provide a narrow advantage over tether (~3%) but also come with -100% downside risk. It might be difficult in any industry to take market share from the top competition if you can only offer a 3% improvement with a nonzero probability that your product becomes worthless.
There is no incentive for Tether USDT to pass on the yields, it's the best form of global digital $ that exists, Everyone in the world wants US $, USDT will be a superior alternative to the Eurodollars >$15 Trillion Circle USDC has been doing some form of this yield-sharing "kickback" but not to the token holders but to industry projects and participants and partners and exchanges, marketing and such, which is why USDC is not profitable And let's not forget USDC had over $3B UNINSURED deposits on that failed Silicon Valley Bank they got lucky US govt bailed them out, probably was getting 0% interest, too, but I digress PayPal stablecoin is pretty much dead, the name and reputation from TradFi doesn't mean much in the crypto universe, jbusse points it out that there is no adoption, no one will use it, but to get adoption, crypto people have to use it, a chicken and egg problem Now US big banks want to issue stablecoins, I'm going to make a prediction they will fail like PayPal stablecoin The token holders have to be rewarded/incentivized for any "stablecoin" to gain meaningful adoption, i.e. Maker/Dai However, with the proliferation of yield farming Curve, lend/borrow platfomrs such as AAVE, the competition is fierce and yields are available for a little effort and knowledge and risks There is a crypto synthetic dollar that has organic yield, built into the architecture and design, and hardly any efforts, but do require knowledge, Ethena USDe and (staked) sUSDe, the latter trades with real-time market price, and has been growing in adoption now over $5B in market cap I started a thread on it over a year ago, Arthur Hayes is involved, I staked on Pendle for a couple of months, got a high yield over 25% from memory pro-rated, but not high enough for me to stay longer as there were some yield farms on memecoins that produced multiples of the yields on Pendle https://www.elitetrader.com/et/threads/synthetic-usde-crypto-native-internet-money-by-ethena.379079/ https://docs.ethena.fi/ https://www.coingecko.com/en/coins/ethena-usde https://www.coingecko.com/en/coins/ethena-staked-usde
"they just generated $189 million in free cash flow, beat EPS by 400%, and have $8 billion in cash," Down 23%, that is Wall Street for you....
See, what I'm talking about isn't some fancy product. Its simply a USDT clone that shares the income generated. USDT did the hard work of surviving during bear markets and at a time when rates were 1/4 of a percent. No wonder people thought they didn't have the assets to back all the USDT they minted. But now, with a healthy 4% rates, all a stablecoin needs to do is hold the short duration treasuries and pay 2% back to the holders. If someone like JPM starts one, they have the brand recognition, and if they share profits, they will suck so much business away from Tether. Would you rather hold 100k USDT in a bear market earning nothing, or perhaps earning 2% if you know you can trust one of the big issuing banks who has all the money in short duration treasuries? I would even say if this product paid daily, imagine the business they can get. Imagine holding 100k in this coin, getting 2% per year, so 2k, but paid daily, so $5.47, automatically deposited into your address. No need for brokerage accounts. Then if you want to buy some BTC, easy to do, but if you want to sit on this stablecoin for a week while you wait for BTC to drop for a better entry, maybe you make $20-30. It would be a killer product!
First of all, JPM cannot issue a yield-bearing stablecoin as it would be considered a security... but let's pretend they can do it global crypto users over 400M worldwide USDT holders do not trust JPM, someone in Turkey, someone in Dubai, someone in Indonesia, someone in Brazil, may never even have heard of JPM And 2% is laughable yield, for KYC-AML requirements, which JPM will surely have to collect in order to pay the interest, as required by banking regulators But you are correct, it will be a killer product... for JPM retail banking, will quickly transfer all their deposits from checking account, instant transfers 24/7 just like any crypto asset... JPM effectively causing a run on their own bank... and become insolvent within a short time due to their over leveraged fractional banking, duration mismatch auto loans/mortgage loans/student loans/credit card loans assets vs JPM stablecoin instant transfers to mobile wallets anywhere in the world woosh, $100 Billion gone from JPM deposits and into JPM stablecoins There's a reason banks are not in the 1 to 1 stablecoin business operating 24/7/365 with 100 employees 155 Billion USDT in circulation and increasing, low friction costs, very low fees, less than 20 cents to transfer $100,000 worth of stablecoins instantly 24/7/365 to anywhere in the world