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Tokenization and Yield of Stablecoins
Stablecoins represent the tokenization of store value and e-money, with some focusing on tokenized deposits as the tokenization of commercial bank money, while others explore central bank digital currencies as the tokenization of central bank money. The innovation with stablecoins involves insurers passing on yield held in reserves to users, creating a new model. However, regulatory components regarding additional yield and implications need to be considered. While some stablecoins users may come to expect additional yield, the primary focus remains on using stablecoins as a payment instrument, thus minimizing long-term holding. The regulatory implications and structural requirements for implementing additional yield on stablecoins are complex and not currently being considered.