Morgan Stanley Getting Into Crypto Trading
In this video I discuss how this could change things especially for a company such as Coinbase. There are a couple variables that I think that are important here.
Article in the video:
https://www.coinspeaker.com/morgan-stanley-introducing-crypto-trading-on-e-trade/
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USDC on Coinbase does yield 4.5% in their exchange and mobile wallet. I think you’re correct that other stablecoins will have to consider passing through yield to users. If anything, as long as the coins and yield are in circulation, it grows their holdings. They’d have to buy more treasuries to back the interest issued. With more assets there are more or larger trades, which means greater revenue for them. Perhaps someday when securities are tokenized, they too can be settled with stablecoin. Pass-through yield is slow drip liquidity for the markets.
It opens a completely new realm of potential with regards to incentivization. The present structure these issuers are using is to get free money in the form of interest in exchange for providing the ability to transact $1 worth of value.
Interesting analysis on how Morgan Stanley's crypto trading move could impact Coinbase! The variables you highlighted definitely make this a game-changer. Looking forward to seeing how this plays out in the market. Thanks for sharing the article link too - very insightful content!