Author: Haotian
This perspective is so cool! Behind various stablecoin regulatory policies, the market has indeed severely underestimated the explosive potential of the "yield-generating stablecoin" track:
First, one must understand what a yield-generating stablecoin is—essentially a "digital dollar that makes money by itself".
Unlike traditional stablecoins such as USDT and USDC, which are merely digital cash tools, yield-generating stablecoins directly embed revenue mechanisms like U.S. Treasury bonds, DeFi lending, and derivative arbitrage into token logic, automatically generating 3%-27% annual yields for holders.
This is not simply a DeFi innovation, but a redefinition of stablecoin functionality itself—evolving from "storing money" to "money making money".
So how is the yield-generating stablecoin market? From $660 million in August 2023 to $9 billion now, it has grown 13 times in just over a year, with a 583% increase in 2024 alone. Yet even with such rapid growth, it still represents less than 5% of the $230 billion stablecoin market. Compared to the mature $7 trillion money market fund scale, this track still has tremendous trillion-dollar growth potential ahead.
More critically, the policy wind is changing. The SEC's regulatory stance on yield-generating stablecoins has gradually become clearer from its previous ambiguity, with various legislative frameworks accelerating. Traditional financial giants like BlackRock are directly entering the market through products like BUIDL, and so on.
When three key elements are in place—clear policy compliance pathways, robust infrastructure, and institutional capital inflow—"yield-generating stablecoins" may likely replicate the explosive trajectory of money market funds in 1971, becoming a super bridge connecting traditional finance and digital assets.
