Coinbase CEO Says Banks Will Eventually Demand Interest-Paying Stablecoins

Coinbase CEO Brian Armstrong predicted that US banks, currently opposing yield-generating stablecoins, will eventually reverse course and lobby Congress to permit interest payments on these digital assets within a few years. Armstrong argues that banks are currently protecting low-cost deposits but will be forced to adopt the technology to compete for capital as market evolution becomes inevitable. This prediction comes as banking lobbyists seek to close a loophole in the GENIUS Act, which allows intermediaries like exchanges to pass Treasury reserve yields to users, while prohibiting direct interest payments by stablecoin issuers. Armstrong views the lobbying efforts to reopen the bill as wasted effort and a "red line" issue for the crypto industry, suggesting banks will ultimately pivot to issuing their own tokenized dollars to capture the yield spread.

(Source：BeInCrypto)