Binance (CRYPTO: BNB) founder Changpeng Zhao told ARK Invest CEO Cathie Wood that stablecoins should generate interest for users—yet Tether (CRYPTO: USDT) won’t do that anytime soon, because it built dominance without offering yields.
Tether Leaving Room For Competition
Zhao explained that Tether moved early and built dominance without paying users. Newer stablecoins are now offering yields, creating an opening for competition.
“Stablecoins should generate interest for the users,” Zhao stated during the ARK Invest podcast.
“I don’t think Tether is going to do that anytime soon. They’ve achieved dominant position without doing that because they were the early mover,” he added.
Businesses will find ways to reward users regardless of restrictions.
Activity-based rewards, different account types, staking options, and other mechanisms allow companies to pass value to users even if direct interest payments face regulatory hurdles.
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