With the new legislation in the U.S., the focus of stablecoins is shifting from yield generation to their real-world utility. This change, akin to European initiatives, opens up new possibilities for developers.
New Regulations for Stablecoins
Restricting interest-earning stablecoins has led companies like PayPal, Amazon, and Walmart to explore using stablecoins for payroll and payments. For those seeking yield, tokenized treasury funds offer returns of 4-5% without regulatory confusion.
Interest in Programmable Finance
The shift towards utility is rekindling interest in programmable finance. Real-time settlements, low fees, and smart contract integration are becoming new benchmarks for stablecoin innovation, especially as institutional players seek to streamline operations.
Prospects for DeFi and Stablecoins
According to Jason Lau from OKX, "utility beats yield now." He notes that clearer rules are pushing stablecoins deeper into on-chain ecosystems, where they already play key roles in lending, payments, and tokenized assets. DeFi platforms may emerge as major winners under these new regulations.
The introduction of the new U.S. stablecoin act transforms how they are used, emphasizing utility and opening avenues for further development in financial technologies.
