Crypto wonks: anyone read/written a good piece on business of stablecoins?
Trying to learn if Tether, Circle et al can make money if reserves are all cash & short-term t-bills. Interest would be inadequate to fund operations, no? Maybe they rely on sidelines like consulting?
Conversation
Replying to
they can make a *little* bit but not a lot.
Unless, that is, they start charging more. If they charge 0.10% on creations and redemptions, then it's a sustainable business.
Isn't it kind of the same thing for NFT minting/reselling? Once the fees become large, people are sort of encouraged to make their own metaplex fork with blackjack, and hookers, and kind of just pay themselves the minting fee and circlejerk with wash trades.
1
Most stablecoin businesses will be a gateway drug to a liquidity business. Once you control the on and off ramps you can offer adjacent services. See what Paxos did with PayPal.
2
10