Yield-bearing stablecoins are quickly gaining popularity in the crypto ecosystem and attracting attention from investors and major banks.
JPMorgan predicts that yield-bearing stablecoins could grow from 6% to 50% of the stablecoin market, subject to regulatory developments.
The adoption of tokenized Treasurys, which offer yield and act as digital versions of government bonds, has been a major catalyst for the rise of yield-bearing stablecoins.
Regulation remains a challenge for yield-bearing stablecoins, as they are often classified as securities, but recent approvals by the SEC indicate a pathway forward.