$BTC
🚨 The banks spent months fighting to stop stablecoins from paying YOU interest. Now 21 of them are launching their OWN.
Goldman Sachs, Citi, Wells Fargo and others are reportedly putting $270 MILLION into a joint stablecoin venture.
Here's how the business works.
You exchange a dollar for a stablecoin. The issuer invests the reserves, often in Treasury bills, and earns interest.
You get the dollar-backed token. They keep the yield.
The GENIUS Act already prohibits issuers from paying holders interest directly. Banks have been lobbying to restrict rewards paid through exchanges, too.
Their concern? Customers might move trillions out of traditional bank deposits.
So the banks aren't against stablecoins. They want a piece of the business, without having to compete on how much interest you get.
Source: The Crypto Times, Bloomberg, Cointelegraph
#worldnews #CryptoNewss
🚨 The banks spent months fighting to stop stablecoins from paying YOU interest. Now 21 of them are launching their OWN.
Goldman Sachs, Citi, Wells Fargo and others are reportedly putting $270 MILLION into a joint stablecoin venture.
Here's how the business works.
You exchange a dollar for a stablecoin. The issuer invests the reserves, often in Treasury bills, and earns interest.
You get the dollar-backed token. They keep the yield.
The GENIUS Act already prohibits issuers from paying holders interest directly. Banks have been lobbying to restrict rewards paid through exchanges, too.
Their concern? Customers might move trillions out of traditional bank deposits.
So the banks aren't against stablecoins. They want a piece of the business, without having to compete on how much interest you get.
Source: The Crypto Times, Bloomberg, Cointelegraph
#worldnews #CryptoNewss
