David Ripley, the CEO of Kraken, has responded to comments made by a senior executive from the American Bankers Association, who stated that the yield from stablecoins is a “detriment” to banks’ capacity to support their communities.
Brooke Ybarra, the ABA’s senior vice president of innovation and strategy, argued that allowing major crypto exchanges like Kraken or Coinbase to pay interest on payment stablecoins would contradict the concept that stablecoins exist for payments rather than as a store of value.
“A detriment to whom?” Ripley responded. “Consumers deserve the freedom to choose how they store value and the most effective means to transfer that value.”
Kraken CEO asserts the crypto sector is developing “something different”
Ripley contended that banks have profited from customer assets without sharing the advantages with them, adding:
“We are working towards a different system—a framework where services previously available only to the affluent are accessible to all.”
Others within the crypto sector supported Ripley’s views. Dan Spuller, head of industry affairs at the Blockchain Association, stated, “The big banks are aggressively targeting our colleagues at @Coinbase and @KrakenFX to preserve their dominance.”
“In essence: competition is prevailing,” Spuller added.
Several stablecoins offer yields of up to 5% on deposits through specific crypto platforms, significantly higher than the US national average savings rate of merely 0.6% and exceeding the best high-interest offerings of 4%, according to data from Bankrate.
Solana developer Voss stated, “We welcome the competition; after all, this is a capitalist environment.”
These remarks come just a few months after US President Donald Trump approved the long-awaited Genius Act, a detailed regulatory framework for stablecoins that signifies their potential path toward mainstream acceptance.
The crypto sector is resisting traditional finance
According to Diogo Monica of Haun Ventures, stablecoins may offer greater safety than deposits in commercial banks, noting that many stablecoins are backed by reserves in globally significant banks (G-SIBs) or short-term US Treasury bills, which he considers more secure than commercial bank deposits.
Related: Japan’s FSA considers permitting banks to hold Bitcoin and other cryptocurrencies: Report
Globally, tensions between the crypto industry and traditional banking systems have also escalated recently.
A recent survey from Binance Australia highlighted that crypto users face ongoing banking hurdles when trying to interact with exchanges and other crypto services.
Matt Poblocki, the general manager of Binance’s operations in Australia and New Zealand, informed Cointelegraph that smooth access to financial services significantly influences market participation, confidence, and trust, introducing obstacles that may hinder growth and adoption.
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