Coinbase CEO: Banks Lend Deposits Without Consent, Stablecoins Safer
- —Armstrong: banks lend out customer deposits without consent, Coinbase does not
- —USDC is backed 1:1 by short-term US Treasuries
- —Coinbase USDC rewards of 3.75–4.5% are funded by reserve yield
- —Banking lobby warns stablecoin rewards could trigger trillions in deposit outflows
Why it matters: The fight over stablecoin rewards will shape whether deposits migrate from banks to crypto and how the CLARITY Act regulates them.
Source: Crypto Briefing