This week, a sequence of events reinforced what has already become inevitable: stablecoins are forcing the global financial system to revisit its foundations. From bold statements by leaders such as Patrick Collison (Stripe) and Tushar Jain (Multicoin) to the systemic risk warning issued by Standard Chartered, the convergence between innovation and monetary policy is now at the center of the debate.
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Stripe: Stablecoins Will Make Yield Inevitable
This week, Stripe CEO Patrick Collison stated that stablecoins will pressure banks to share yield with customers, or be left behind. His remarks respond to the rise of yield-bearing stablecoins, which offer returns comparable to U.S. Treasury bills.
According to Collison:
“Depositors will, and should, earn something closer to a market return on their capital.”
The statement exposes the gap between the average interest rates offered by banks (around 0.4%) and the new digital reality, where stablecoins are beginning to distribute yield globally and in real time, even under legal restrictions such as those imposed by the GENIUS Act.
Why this matters:
✅ Stripe’s position shows that even the biggest names in finance now recognize the disruption caused by stablecoins.
✅ The race for yield becomes a competition for trust, not just financial margin.
✅ The difference between banks and digital platforms is now tangible to end users.
GENIUS Act and the Decentralization of Banking Power
Tushar Jain, co-founder of Multicoin Capital, described the GENIUS Act as “the beginning of the end of banks’ monopoly over deposits.” The U.S. legislation, while restricting direct yield payments by stablecoin issuers, opens room for indirect models, explored by affiliates and partner platforms.
According to estimates from the U.S. Treasury, up to $6.6 trillion could leave the traditional banking system and migrate into stablecoins over the coming years. In a scenario where Big Techs like Apple and Meta are reportedly considering launching their own stablecoins, the competition for deposits is entering a new phase.
Why this matters:
✅ U.S. regulation has given the green light for a global, competitive stablecoin market.
✅ For the first time, banks must compete for customers against code-based financial infrastructures.
✅ Embedded-yield models may become the new benchmark for financial efficiency.
Emerging Banks on Alert: Capital Flight Risk via Stablecoins
Standard Chartered released a report warning that up to $1 trillion could flow out of banks in emerging markets into stablecoins over the next three years. The reason is clear: with 99% of all stablecoins pegged to the U.S. dollar, they’ve become a stable alternative in economies facing currency volatility.
The report summed it up with a striking phrase:
“The return of capital matters more than the return on capital.”
From a geopolitical perspective, the paradox is obvious: while the U.S. worries about potential erosion of its domestic banking sector, the dollar’s reach, through stablecoin infrastructure, continues to strengthen globally, even in regions where the American currency has already replaced local money as the unit of account.
Why this matters:
✅ Stablecoins are now being recognized as a systemic risk by traditional financial institutions.
✅ The “stablecoin dollarization” process could reshape monetary balance across emerging economies.
✅ Central banks will need to rethink their strategies in light of global, decentralized financial instruments.
Token2049 and the Maturing of the Crypto Industry
During Token2049 in Singapore, the dominant narrative was one of maturity. The event gathered leaders from companies such as EY, Tether, dYdX, and Stable, highlighting how the sector is evolving from its experimental phase into a more structured one, with an emphasis on corporate privacy, governance, and compliance.
Paul Brody, of EY, summed up the moment:
“Traditional finance and crypto are meeting in the middle.”
Among the highlights, Reeve Collins (Stable/Tether) presented the concept of “Stablecoin 2.0”, stable assets that integrate yield, governance, and transparency, expanding their role far beyond simply representing the U.S. dollar.
Why this matters:
✅ The current cycle marks a convergence between institutional standards and crypto technologies.
✅ The sector is gaining regulatory strength without losing operational efficiency.
✅ Real-world adoption is starting to outpace speculation, and that’s changing the nature of innovation cycles.
European Union Proposes Centralizing Regulation Under ESMA
While the U.S. pushes ahead with a competitive stablecoin market, the European Union wants to consolidate supervision under the European Securities and Markets Authority (ESMA). The proposal aims to unify the application of MiCA rules and reduce regulatory asymmetries among member states.
Currently, each EU country can issue its own licenses for exchanges and stablecoin issuers, a framework the European Commission wants to replace with a centralized, supranational model.
Why this matters:
✅ Europe seeks a harmonized approach to mitigate risks and ensure predictability.
✅ Centralization could generate tension between member states with different views on financial innovation.
✅ The challenge will be finding the balance between regulatory protection and competitiveness.
Around Lumx
We have major updates coming soon that we’ll be able to share in more detail shortly.
Meanwhile, our CRO, Nathaly Diniz, is in Madrid for Merge Madrid, one of the key forums connecting leaders from Europe and Latin America around fintech, Web3, and digital payments innovation. If you’re attending, connect with Nathaly here.
And an exclusive spoiler: Episode 3 of the new season of Stable Talks premieres next week, featuring Rachael Akali from Yellowcard, one of Africa’s largest crypto fintechs, discussing the expansion of stablecoins in emerging economies and key parallels with Latin America.
Catch up on previous episodes here and don’t miss the next one.
In Perspective
This week’s edition of Stable News shows that we’ve moved beyond the validation phase. The domino effect triggered by stablecoins is now pressuring banks, shaping public policy, and challenging long-standing business models.
If the question before was “Will stablecoins succeed?”, the new one is: “Who will define the rails of this new financial infrastructure?”
See you in the next edition.
Why does Stripe's CEO say stablecoins will force banks to share yield?
Stripe CEO Patrick Collison stated that yield-bearing stablecoins, which offer returns comparable to U.S. Treasury bills, will pressure banks to share yield with customers or risk losing deposits. With banks currently offering average interest rates around 0.4%, stablecoins are creating a tangible gap that customers can see — making the competition for deposits increasingly digital and transparent.
What is the GENIUS Act and how does it affect stablecoin yield?
The GENIUS Act is U.S. legislation that, while restricting direct yield payments by stablecoin issuers, opens room for indirect yield models explored by affiliates and partner platforms. Multicoin Capital's Tushar Jain described it as the beginning of the end of banks' monopoly over deposits, signaling a fundamental shift in how digital liquidity is distributed.
What systemic risks do stablecoins pose to the financial system?
Standard Chartered issued a warning about systemic risks from stablecoins, including potential rapid outflows from bank deposits into stablecoin products, concentration risk among large issuers, and the challenge of maintaining reserve backing during market stress. These concerns are driving regulators to create frameworks that balance innovation with financial system stability.
How are stablecoins creating a domino effect across global finance?
Stablecoins are triggering a chain reaction across the financial system: fintech leaders are building competing infrastructure, regulators are racing to establish frameworks, banks are being pressured to modernize deposit products, and institutional investors are treating stablecoins as strategic assets. This convergence between innovation and monetary policy is forcing the entire financial system to revisit its foundations.
