Stablecoins have gained popularity due to challenges in the US financial system, such as limited banking hours and a lack of non-USD trading options, as discussed by Jerald David, president of Arca Labs, during a panel at TokenizeThis 2025. The need for stablecoins arises from the traditional banking infrastructure's inability to facilitate 24-hour transactions. David highlighted that innovations in payment systems are soon to emerge, integrating yield-bearing instruments with stablecoins. The panel also addressed Know Your Customer (KYC) processes, emphasizing that holders of yield-bearing stablecoins may need to undergo KYC for tax compliance. However, David argued that using stable tokens for everyday purchases shouldn't necessitate such stringent identity checks. Nick Carmi from Figure Markets proposed a trust-based KYC system, enabling users to utilize their credentials across various platforms, thus reducing barriers and improving user experience within the crypto ecosystem.

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