💵 The stablecoin model may be entering a new phase. In just 9 months of 2025, Tether reported roughly $10B in profit, largely driven by yield on its ~$137B in U.S. Treasury holdings. The model is simple: capital backing $USDT is invested in short-term Treasuries, and the issuer captures the yield. In practice, stablecoin holders provide capital while receiving price stability not yield. New onchain designs are now emerging to redirect part of that yield back to users and ecosystems. The stablecoin yield model is evolving. ⚡️

💵 The stablecoin model may be entering a new phase.

In just 9 months of 2025, Tether reported roughly $10B in profit, largely driven by yield on its ~$137B in U.S. Treasury holdings.

The model is simple: capital backing $USDT is invested in short-term Treasuries, and the issuer captures the yield.

In practice, stablecoin holders provide capital while receiving price stability not yield.
New onchain designs are now emerging to redirect part of that yield back to users and ecosystems.

The stablecoin yield model is evolving. ⚡️