Market Update | The $6.6 Trillion Battle for Interest: Rise of Stablecoins, US Treasury Hegemony and the Paradigm Shift of the Global Banking System

An "interest ownership war" is underway as stablecoins challenge traditional banks' low-cost deposit model. Stablecoin issuers, operating with 100% reserves and lower costs, can return interest to holders, unlike banks' fractional reserve system which profits from interest rate spreads. The GENIUS Act, intended to legitimize stablecoins, prohibits direct interest payments, leading to workarounds like Coinbase's loyalty rewards. This competition impacts U.S. Treasury demand and geopolitical monetary strategy, especially against China's digital RMB. A future convergence is likely, with banks potentially issuing their own stablecoins, while smaller banks face increased pressure.▶️ Download our app here:📌 Play Store: ⁠https://play.google.com/store/apps/details?id=com.tradingkey.mobile&hl=en⁠📌 App Store: ⁠https://apps.apple.com/us/app/tradingkey-stock-analysis/id6744304666📢 DISCLAIMERTradingKey provides general information on certain investment products. This information is not intended to constitute financial advice or a recommendation for any specific investment product.