Growing Adoption of Stablecoins
The diminished accessibility of the U.S. financial system, characterized by restrictive banking hours and a lack of non-USD trading options, has led to a dramatic increase in the adoption of stablecoins. This trend was underscored by Jerald David, the president of Arca Labs, during a panel discussion at the TokenizeThis 2025 conference on April 16.
Innovative Yieldcoins
The event delved into the concept of yieldcoins, a novel cryptocurrency that allows holders to earn returns through mechanisms like staking and lending, much like stablecoins. David pointed out that the conventional banking schedule, primarily operating from nine to five, falls short of meeting the demands of a continuously operating sector.
He anticipates that future payment systems will begin incorporating yield-generating products alongside stable tokens, thereby bridging the gap created by traditional banking hours.
Challenges of KYC Protocols
The panel also tackled the important issue of Know Your Customer (KYC) protocols, which play a vital role in ensuring tax compliance. A representative from Figure Markets noted that holders of yield-bearing stablecoins would be required to complete KYC verification processes.
However, David contested this notion, suggesting that while yield generation is a significant use case for stablecoins, their functionalities extend far beyond this, particularly in everyday transactions such as purchasing coffee, where he believes KYC and Anti-Money Laundering (AML) checks should not be mandatory.
Proposed Solutions for User Experience
In a bid to enhance the user experience, Nick Carmi, the head of exchange at Figure Markets, proposed a trust-based KYC model. This approach would allow individuals to retain their verification credentials across various platforms, thereby alleviating the burdensome process of undergoing separate KYC screenings for each financial service or institution, which can be particularly challenging for users engaged in multiple crypto environments.
