POPA ReconStablecoin remuneration on centralised exchanges
Stablecoin remuneration on centralised exchanges CEXes offer yields to stablecoin holders through either a reserve-based model (e.g., Coinbase/USDC) where payouts track traditional monetary policy rates, or an activity-based model (e.g., Binance/USDT) where yields are highly volatile and driven by crypto market trading and lending demand Depending on which model dominates, wide stablecoin adoption could trigger boom-bust redemption cycles that impact sovereign and bank backing assets, while also altering monetary policy transmission by shifting funds away from bank deposits and money market…
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