@kia.eth

Point not mentioned: The Coinbase Income Statement Effect If you manage to run your business on your own stablecoin instead of dollars then you have topline revenue of the underlying tbills this could be hundreds of millions of dollars of topline revenue if you are Stripe How: Coinbase used to run its business on USD. when a user would wire they'd get credit on the exchange and the underlying USD would sit in Coinbase's account. A few years ago they switched to USDC. every time any dollars hit their platform it'd go to Circle and turn into USDC. Circle would buy tbills with them and pass the yield back to Coinbase (% of it is public info?). Everything about the underlying business stayed the same. or it even got more efficient via points mentioned by Patrick Collison below. but all of that dead money started to generate 3-5%. even if Coinbase passes that yield back to the user (even better) then that's still top line revenue for Coinbase. This is extremely powerful if you are Stripe, Amazon or Walmart. but even if you are a small business. everyone who has been around the block in crypto is used to all of the points that Collison mentioned in that HN post. and those are true and meaningful. but they weren't meaningful enough to move the world to crypto on their own. They wonm't tell you this. but the reason all of this STABLECOIN talk is happening is because of the Coinbase Income Statement Effect from those juicy treasury yields. This is also very powerful for the US. this is because US is running out of soverigns and giant money to buy its debt. but stablecoins make such that the little guy can buy those sweet juicy Uncle Sam debts. this might sound neferious but it's actually great for the people if those yields are passed down to them. And the yields will be passed down to the people because someone will do that and that someone will win the distribution from those that don't. everyone knows this so everyone will look for a way to do this on their own terms. https://x.com/patrickc/status/1964119986227806502

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