Patrick Collison Says Yield-Bearing Stablecoins Will Pressure Banks to Offer Real Returns
Stablecoins are emerging as a major force in global finance, and their growth could soon reshape how banks operate. According to Patrick Collison, CEO of payments firm Stripe, the rise of yield-bearing stablecoins will eventually push traditional banks and financial institutions to share yield with depositors or risk losing competitiveness.
At present, U.S. savings accounts average just 0.40% interest, while European rates hover near 0.25% — a stark contrast to the returns offered by blockchain-based digital assets. Collison argued that this gap cannot persist much longer.
“Depositors are going to, and should, earn something closer to a market return on their capital,” he said, emphasizing that consumer expectations are changing rapidly in the post-GENIUS era.
Regulated Stablecoins Drive Market Competition
The passage of the GENIUS stablecoin bill in the United States created a regulatory foundation for the industry, allowing compliant issuers to operate transparently. However, it also restricted yield-sharing mechanisms — a move that some analysts say protects banks but limits innovation.
Still, the stablecoin sector continues to expand. Market capitalization has surpassed $290 billion in 2025, and transaction volumes are climbing as businesses and consumers increasingly use blockchain-based payment rails for everyday transactions.
Collison believes this momentum will make traditional savings models obsolete.
“Cheap deposits are great, but being so consumer-hostile feels to me like a losing position,” he said, suggesting that banks will need to adapt by offering market-driven yields to retain customers.
Banking Industry Pushes Back Against Yield Innovation
The banking lobby remains resistant to stablecoin products that offer interest-bearing returns. Some lawmakers argue that if stablecoin issuers start paying yield, it could erode local banking deposits and destabilize smaller institutions.
Yet, crypto leaders maintain that the transformation is inevitable.
“All currency will be a stablecoin,” said Reeve Collins, co-founder of Tether. “It’ll just be called dollars, euros, or yen.”
The message from the fintech sector is clear — stablecoins are redefining money, and the pressure on traditional banks to share yield will only intensify. As blockchain adoption grows, the financial industry may be entering a phase where customers finally expect real returns on digital and fiat deposits alike.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.