Our co-founder Mike Cagney chatted with Bloomberg on yield-bearing stablecoins and how the financial landscape will change.

“Regulation will ultimately divide the market into three buckets: offshore coins, which Mike expects to be banned under U.S. rules; non-interest-bearing coins like USDC, which will stay within the banking perimeter; and yield-bearing coins, which are destined to be regulated as securities.”

Mike shared, “If these flows grow, it could pull liabilities out of traditional banks. That reshapes credit availability. It changes how banks function. It’s a form of narrow banking—not enabled by legislation, but by software.”

What are your thoughts?