#stablecoin-yield

[rwatimes]

USDai Crosses $20M in Yield Paid as GPU-Backed Loans Grow

USDai tops $20M in yield paid as GPU-backed loans near half of reserves, with staking yields around 8% APY, well above most stablecoin peers.

➤ USDai, a decentralized stablecoin protocol, has paid over $20 million in yield, driven by growing demand for its GPU-backed lending model. ➤ The protocol offers an attractive staking yield of around 8% APY, significantly higher than most stablecoin peers, by diversifying collateral beyond traditional Treasury bills to include loans secured by physical GPU hardware for AI infrastructure. ➤ While USDai's supply is substantial, its on-chain liquidity remains modest, with most activity concentrated on the Arbitrum network.

[rwatimes]

Garlinghouse vs Dimon: The CLARITY Act fight nobody's watching

Ripple's Garlinghouse wants the CLARITY Act passed. JPMorgan's Dimon is fighting it. Inside the stablecoin-yield battle that decides crypto's future.

➤ The CLARITY Act, a crucial piece of legislation for crypto's future in the US, is at the center of a conflict between Ripple CEO Brad Garlinghouse and JPMorgan CEO Jamie Dimon. ➤ The core dispute revolves around whether stablecoins should be allowed to offer yield, a provision that banks fear could drain deposits, while crypto firms see it as a key growth driver. ➤ The outcome of this fight will significantly shape the regulatory landscape for digital assets, influencing capital flows and the structure of the on-chain finance economy, with a potential 'both sides claim victory' resolution.

[rwatimes]

JPMorgan Says CLARITY Act Faces Tight Timeline as US Midterm Elections Near

JPMorgan says the CLARITY Act faces a narrow passage window as midterms near, with stablecoin yield rules and bank opposition slowing progress.

➤ JPMorgan analysts predict the CLARITY Act faces a narrow legislative window due to the upcoming US midterm elections and ongoing disputes over stablecoin yield rules. ➤ A key point of contention is whether crypto platforms can offer interest-like rewards on stablecoins, with banks pushing for stricter regulations akin to traditional banking. ➤ Despite support from some officials, significant hurdles remain, including Senate votes and alignment with the House, casting doubt on the bill's passage this year.

[rwatimes]

JPMorgan: CLARITY Act Has Only A Narrow Window To Succeed, Timing Is 'Pivotal' - JPMorgan Chase (NYSE:JPM

JPMorgan Chase warned that the crypto industry's long-awaited Clarity Act faces a narrowing path to passage as midterm-election politics and disagreements over stablecoin yields create new obstacles. The biggest sticking point remains whether stablecoin issuers can offer yield-like products.

➤ JPMorgan warns that the CLARITY Act faces a narrowing window for success due to political hurdles and disagreements over stablecoin yields. ➤ The primary sticking point is whether stablecoin issuers can offer yield-like products, with banks advocating for stricter regulations similar to traditional financial institutions. ➤ Tighter restrictions on stablecoin yield could redirect capital towards tokenized Treasury products and other regulated alternatives, rather than crypto-native yield offerings.

[rwatimes]

JPMorgan says crypto bill may have only a narrow window for passage this year

JPMorgan analysts said the crypto market structure bill, or Clarity Act, may have only a narrow window for passage this year.

➤ JPMorgan analysts believe the crypto market structure bill (Clarity Act) faces a narrow window for passage this year due to the upcoming U.S. midterm elections. ➤ A major obstacle is the debate over stablecoin yield, with banks advocating for stricter limits and crypto firms seeking more flexibility. ➤ Restrictions on stablecoin yield could redirect idle crypto funds towards tokenized Treasuries or deposits, potentially impacting crypto-native firms.

[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]

Stable Launches StableEarn for Tokenized Treasury Yield

Stable has expanded its ecosystem beyond stablecoin payments with the launch of StableEarn, a new treasury management product introduced on May 26.

➤ Stable has launched StableEarn, a new treasury management product designed for neobanks, fintech firms, and individual crypto users seeking stablecoin yield opportunities. ➤ The product's initial vault integrates yield strategies from Theo (tokenized U.S. Treasuries and gold-backed products) and utilizes Gauntlet for risk management on the Morpho decentralized lending platform. ➤ This launch enters a competitive market for stablecoin treasury products, highlighting the growing convergence of stablecoin payments and tokenized treasury management, amidst evolving regulatory scrutiny.

[rwatimes]

Lido EarnUSD: Why Stablecoin Yield Products Are Moving Beyond Staking

Lido’s stablecoin yield push shows how DeFi is shifting from simple staking into managed vaults, risk routing and automated income products.

➤ The DeFi landscape is evolving beyond simple staking for stablecoins, with a new generation of products like the conceptual 'Lido EarnUSD' focusing on managed vaults, risk routing, and automated income generation. ➤ These new products aim to provide dollar-denominated yields by diversifying return sources beyond staking, incorporating tokenized T-bills, on-chain credit, and market-neutral strategies, while prioritizing composability, simplicity, and clear yield sourcing. ➤ Key considerations for evaluating these yield-bearing stablecoins include understanding the yield engine, mapping the risk stack, clarity on redemption, liquidity depth, and navigating regulatory landscapes, as stablecoin yield is not without significant risks.