Stablecoins rewrite financial rules, banks chase returns

Interest-yielding stablecoins are reshaping the financial industry by providing returns pegged to fiat currencies, attracting institutional and retail investors. This prompts traditional banks to work with blockchain and fintech companies to integrate these assets and challenge the functions of traditional banks. Although regulatory and risk management barriers remain, early adopters see benefits such as expanding their customer base and diversifying their revenues. These tools increase monetary efficiency through faster cross-border payments and predictable returns, driving innovation, especially in areas where banking services are scarce. More and more banks are forming alliances with DeFi agreements to address the complexities of technology and regulatory.