Stablecoins rose to popularity as a result of limitations in the US financial system

The panel discussion centered on yieldcoins or, essentially, the rising of cryptocurrencies that can generate yield through holding, staking or lending, like stablecoins.

Stablecoins surged in popularity due to the shortcomings of the US financial system, specifically limited banking hours and the absence of a non-USD trading pair, according to Jerald David, president of Arca Labs.

“So we start thinking about the reason why, we start talking about the nine-to-five banking hours,” David said during a panel at TokenizeThis 2025 event on April 16.

The panel discussion focused on yieldcoins or, essentially, the rising of cryptocurrencies that can generate yield through holding, staking or lending, like stablecoins.

“Well, nine-to-five banking hours don’t work, and there are implementations right now of payment systems that are going to come to market very soon, that are a good combination of both yield-bearing instruments as well as stabletokens.”

According to David, the pressing need for stablecoins arises from the fact that the traditional US banking infrastructure doesn’t support round-the-clock transactions. “And this industry, as we all know, is a 24-hour industry.”

KYC for stablecoins

The discussion touched upon Know Your Customer procedures, which are usually pertinent for yield-bearing instruments. One representative from Figure Markets said that everyone who owns a yield-bearing stablecoin would have to be KYC-ed for tax reasons.

But David pointed out that stablecoins have several use cases beyond yield generation, including payments. “Using this stable token to buy a cup of coffee is not something that really should require AML or KYC for somebody.”

suggesting that part of the solution could be a trust-based KYC system that allows users to carry their credentials across platforms.

Currently, users must complete separate KYC checks for each financial institution or service they use, leading to friction and frustration, especially for those navigating multiple platforms or exploring different crypto ecosystems.