Stablecoins May Challenge Bank Profit Models, Says Delphi Digital

Delphi Digital has suggested that stablecoins could pose a challenge to traditional bank profit models. According to NS3.AI, the firm highlighted that U.S. Treasury yields are currently around 3.89%, whereas standard savings accounts offer approximately 0.39%. This disparity in yields could lead stablecoin issuers to share higher yields with their users, potentially drawing funds away from bank deposits. Such a shift might undermine banks' low-cost funding sources, impacting their profitability.