Stablecoin issuers dominate crypto revenue, capturing up to 75% of daily protocol earnings

Stablecoin issuers are the most profitable segment in crypto, consistently earning between 60% and 75% of total daily protocol revenue across major categories like lending and DEXs. This dominance stems from their business model: earning yield from backing assets like U.S. Treasuries without distributing that interest to stablecoin holders. Tether, for instance, is projected to make $15 billion in profit this year with a 99% margin. This practice is reinforced by U.S. law, such as the GENIUS Act, which prohibits permitted payment stablecoin issuers from paying yield to holders. However, competition is emerging; USDe offers yield via a synthetic model, and Coinbase rewards USDC holders through a third-party platform, signaling potential shifts in value distribution as issuers like Tether expand.

(Source：The Block)