Tether Co-Founder Says ‘Stablecoin 2.0’ Era Is Coming

The stablecoin industry may be entering a new phase, Cryptonews reported on June 20.

Appearing on the “On the Margin” podcast, Tether co-founder Reeve Collins said the industry is currently structured so issuers keep all returns generated by reserve assets. He said the market will evolve toward a model in which users and issuers share that income.

Collins described the concentration of reserve-asset income at issuers as the industry’s biggest problem. Tether’s business model takes in $1 from a user and issues a token worth $1, he said. Users get access to dollars and payment convenience, but they receive none of the yield generated by the reserves.

As an alternative, Collins pointed to STBL, a stablecoin protocol now under development. He said STBL separates payment functions from yield functions, allowing users to use stablecoins and earn returns without locking up their funds.

He added that the project aims to deliver meaningful yields by using not only US Treasuries but also institutional-grade investment assets. The ultimate goal, he said, is to build infrastructure that allows anyone to issue their own stablecoin.