Yield-bearing stablecoins are drawing attention from U.S. banks and regulators as the gap between bank deposits and digital cash products narrows. These tokens began as tools for trading and settlement inside crypto markets. Some now offer returns, placing them closer to instruments long associated with the banking system.

That shift carries weight for investors. Regulatory treatment of yield-bearing stablecoins can shape capital movement, influence DeFi liquidity design, and affect which platforms gain access to deeper pools of funding.

Why Yield-bearing Stablecoins Are Under Pressure

Pressure has grown as banks warn that interest-paying digital dollars may compete with deposits at scale….

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