As the StableCOin competition is heated with threatening regulation in the United States, traditional financing institutions take notice – largely for fear of losing digital dollars, Ben Reynolds, Bitgo CEO of StableCeOins, said in Consensus 2025 in Toronto.

When he spoke in a panel discussion, he said Bitgo’s newly launched stablecoin-as-a-service has seen “incredibly in-depth” interest from us and foreign banks who want to tokenize deposits or issue stableecoins.

“A lot of banks are just defensive – they’re afraid they’ll lose their deposits,” Reynolds said. “They look at stableecoins and say, How are we not going back?”

Providing versions of stableecoins and tokenized money market funds have seen rapid growth recently, but still constitute only a fraction of the stableecoin market of $ 230 billion.

A16Z’s Sam Broner said that although dividend -bearing stableecoins are a promising market segment, their primary use case for payments and transactions where users are not really interested in dividends. Still, a short-term killer use case could be “security mobility” ability to immediately move money to meet obligations across different platforms.

“You can’t do a lot of things with a share of a money market fund,” Broner said. “You have lock-up periods, business time and contracts that need to be reviewed manually. Crypto gives you programmatic, permissionless flexibility.”

Yield -bearing stableecoins could also be attractive to institutions, said Matt Kunke, Crypto Product Strategist at BlackRock. “If you’re a DAO, protocol or market manufacturer moving between crypto holdings on an exchange and your brokerage account is slow and full of friction,” he said. “Stableecoins carrying yield just reducing that trait.”

However, regulatory distinctions will shape the market. “A tokenized Finance Ministry is a security, and an actual stableecoin is not,” he explained. “They basically deserve different markets.”

Joseph Saldana, CFO of Wyoming Stable Token Commission, pointed out that yield – generating tokens has the power to expand investors’ access compared to mutual foundations that often have minimum investments that “unlock many people.”

“We want to service the underbank and give wider access to instruments that the rest of us enjoy every day,” Saldana said.