Stablecoins Gain Traction Amid U.S. Banking Limitations

According to Cointelegraph, stablecoins have surged in popularity due to constraints within the U.S. financial system, particularly limited banking hours and the absence of non-USD trading pairs. Jerald David, president of Arca Labs, highlighted these issues during a panel at the TokenizeThis 2025 event on April 16. The discussion focused on yieldcoins, a type of cryptocurrency that can generate returns through holding, staking, or lending, similar to stablecoins. David emphasized that traditional nine-to-five banking hours are inadequate for the needs of a 24-hour industry. He noted that upcoming payment systems are expected to integrate yield-bearing instruments with stabletokens, addressing these limitations. The panel also addressed Know Your Customer (KYC) procedures, which are crucial for tax compliance. A representative from Figure Markets stated that all yield-bearing stablecoin holders would need to undergo KYC checks. However, David argued that stablecoins have broader applications beyond yield generation, such as everyday payments, which should not necessitate Anti-Money Laundering (AML) or KYC procedures for simple transactions like buying a cup of coffee. Nick Carmi, head of exchange at Figure Markets, proposed a trust-based KYC system that would allow users to carry their credentials across different platforms. This approach aims to reduce the friction and frustration caused by the current requirement for separate KYC checks at each financial institution or service, which can be particularly cumbersome for users navigating multiple platforms or exploring various crypto ecosystems.