#passive yield

[rwatimes]

CLARITY Act Reshapes Stablecoin Yield Economics

The entire stablecoin yield economy is being forcibly restructured from "yield against holdings" to "yield for usage." Tokenized money market funds, serving as…

➤ The CLARITY Act, specifically Section 404, is set to fundamentally restructure stablecoin yield economics by shifting from 'yield for holding' to 'yield for usage'. ➤ Major financial institutions like Morgan Stanley, BlackRock, and JPMorgan are launching tokenized money market funds as compliant yield-bearing instruments for stablecoin reserves in anticipation of this regulatory shift. ➤ This new paradigm closes loopholes for passive yield generation by Digital Asset Service Providers (DASPs) and their affiliates, while preserving rewards tied to genuine user activity and transactions.

[rwatimes]

Kucoin Pushes Earn-and-Loan Product as ETF Capital Pulls Crypto Into New Split

Kucoin has unveiled a product allowing users to unlock liquidity by borrowing against high- liquidity crypto assets while their pledged collateral simultaneously continues to earn passive

➤ Kucoin has launched a new 'earn-and-loan' product allowing users to borrow against crypto assets while their collateral continues to earn passive yield, aiming to bridge CeFi and DeFi. ➤ The product utilizes a single-position architecture and a tiered risk framework to manage liquidity and prevent cascading liquidations, offering institutional-grade capital efficiency. ➤ Kucoin's strategy includes expanding into RWA tokenization and DeFi gateways, positioning itself as a comprehensive digital financial infrastructure provider rather than just a trading venue.