> Stablecoin providers make money on their float -- selling stablecoins means you get free deposits, and risk-free rates are presently around 4%. For every $1M in stablecoins your customers hold, you can make $40k/year. Stablecoin providers like Circle pay about half of that back out to partners that sell the tokens.

These numbers only work while short term rates are high (relative to recent history) and the share percentage is low. The lower the rates and the tighter the margins, and it drops like a rock.

Nobody with a sizable balance is going to accept the risk of a system like this without being paid a premium over traditional bank deposits. If my bank gives me 4% I’m not going to give stripe half of that in exchange for losing FDIC protections.