TLDR Tech / Crypto
Stablecoins Are Building the Next Financial Stack
Delphi Digital maps the collision between stablecoins and traditional banking, noting that stablecoin issuers are now the 19th largest holder of US treasuries and sit on the same assets backing savings accounts while treasuries yield 3.5-4% versus the average 0.39% savings rate. The GENIUS Act prohibits passing yield directly to holders, but the structural threat to fractional reserve funding is real. If dollars migrate into fully reserved stablecoins that only buy treasuries, private credit creation constricts, and smaller banks lose both margin and lending capacity. Stripe's acquisitions of Bridge, Privy, and Metronome, alongside building Tempo with Paradigm, illustrate the vertical integration endgame, while the FDIC and OCC have both proposed rules giving chartered banks a formal path to issue stablecoins.
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