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HomeNewsUS stablecoin yield ban may spur others to offer rewards

US stablecoin yield ban may spur others to offer rewards

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A U.S. ban on stablecoin yield payments could prompt other nations to offer the option, according to Ledger‘s Asia-Pacific lead. Takatoshi Shibayama stated such a ban would open regulatory discussions overseas. He noted that while countries like Australia have given issuers regulatory carveouts, most currently avoid offering yields to protect bank interests.


A potential U.S. ban on stablecoin yields may lead other countries to provide the option, according to Ledger Asia-Pacific lead Takatoshi Shibayama. He stated that a wider U.S. ban “definitely opens up a conversation” between institutions, issuers, and regulators abroad.

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Shibayama noted many stablecoins currently avoid offering yields to protect bank interests. He said “If that were to change in the US, then I think it definitely opens up a lot of conversation between the stablecoin issuers and the regulators to allow yields.” The U.S. Senate’s crypto bill has stalled due to a banking lobby-supported provision for this ban.

Meanwhile, Shibayama observed a shift in how Asia’s financial institutions approach the technology. He said there has been “a bit of a decoupling of crypto and the rest of blockchain technology” in the region.

Institutions are now focused on tokenizing financial products or issuing stablecoins. He added that they are “leaving crypto — the Bitcoins and Ethereums of the world — out of the conversation.” Asset managers differ, still exploring crypto products due to a lack of strict custodian regulations.

However, they are becoming more selective with custody providers. Shibayama noted they obviously prefer to have regulated custodians for these services.

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