I don't think it has dawned on the HN crowd how insatiable the demand for dollars across the world is. This stuff is being used in all corners of the world, and accelerating.
There are plenty of people in jurisdictions where it is difficult to get dollars that use them for other things. Normal transactions, gambling, saving in USD. Not uncommon.
its just like your brokerage account, imagine if Schwab issued a stablecoin for every deposit someone made and only delete some of that stablecoin when they redeem
you'll find that people deposit and trade, they keep their balances there their entire life and beyond. when they trade, they are selling the stablecoin to someone else, someone else could redeem but they aren't either. stablecoins are liquid and useful, they have passive income capabilities while holding your principle value
so for Schwab's reporting, the balances always increase as people deposit more whenever they get their paycheck
this is what you're seeing with Tether, and all other leading stablecoins, as they grow at the same pace as they capture the same market
when actual traditional finance brokerage firms start issuing stablecoins, you'll see the same thing, the stablecoin just offers transparent real time behavior into their customer deposits
the only time stablecoin balances go down, and subsequently treasuries are offloaded behind the scenes, is when someone redeems a stablecoin for fiat currency. this isn't necessary, people don't want fiat or don't need to get fiat by redeeming it
I think the the market for those stablecoins is now broader than criminal and traders.
There is a huge demand for dollars by individuals outside of the US. Countries where people do not really trust their banks and currencies.
Even in the Euro zone, most saving accounts will give you about 1% after taxes. So why not going with USDT, USDC or EURC and get about 5% on a relatively safe lending platform.
hyghjiyhu|4 months ago
delabay|4 months ago
rattlesnakedave|4 months ago
yieldcrv|4 months ago
its just like your brokerage account, imagine if Schwab issued a stablecoin for every deposit someone made and only delete some of that stablecoin when they redeem
you'll find that people deposit and trade, they keep their balances there their entire life and beyond. when they trade, they are selling the stablecoin to someone else, someone else could redeem but they aren't either. stablecoins are liquid and useful, they have passive income capabilities while holding your principle value
so for Schwab's reporting, the balances always increase as people deposit more whenever they get their paycheck
this is what you're seeing with Tether, and all other leading stablecoins, as they grow at the same pace as they capture the same market
when actual traditional finance brokerage firms start issuing stablecoins, you'll see the same thing, the stablecoin just offers transparent real time behavior into their customer deposits
the only time stablecoin balances go down, and subsequently treasuries are offloaded behind the scenes, is when someone redeems a stablecoin for fiat currency. this isn't necessary, people don't want fiat or don't need to get fiat by redeeming it
sunshine-o|4 months ago
There is a huge demand for dollars by individuals outside of the US. Countries where people do not really trust their banks and currencies.
Even in the Euro zone, most saving accounts will give you about 1% after taxes. So why not going with USDT, USDC or EURC and get about 5% on a relatively safe lending platform.
gomox|4 months ago
yieldcrv|4 months ago