The post Stablecoin rewards are a real threat to banks: Maple CEO appeared on BitcoinEthereumNews.com.

Sid Powell, CEO of Maple Finance, says that banks give a bad deal to depositors and are right to fear stablecoin rewards. Summary Sid Powell, CEO of Maple Finance, says there is no systemic risk in offering stablecoin rewards However, Stablecoin rewards are a real threat to banks, which are offering a bad deal to customers Circle and Tether will face increasing competition from other issuers As Coinbase CEO Brian Armstrong ramps up lobbying efforts for stablecoin rewards, the battle lines between crypto and traditional banks are becoming clearer. Banks are worried about yield-bearing stablecoins. According to Sid Powell, CEO of Maple Finance, the company behind SyrupUSD, the third-largest stablecoin yield product. They are offering a bad deal to customers, and profit massively from it, he said in an exclusive interview with crypto.news. Moreover, Powell denied that there are systemic risks to the financial system. crypto.news: Recently, Coinbase CEO Brian Armstrong pushed for lobbying on stablecoin rewards and called out banks for trying to block it. Do you see regulations shifting to allow stablecoin issuers to operate more like banks? And what are the risks involved? Sid Powell: It’s a good question. I don’t think stablecoin issuers will be allowed to act like full-fledged banks, unless they get banking charters. I believe Circle is pursuing one, or at least planning to. The core issue is that banks are licensed deposit-taking institutions. They warehouse credit risk by originating loans for mortgages, business loans, credit cards, etc. To do that, they need capital reserves and strong credit underwriting capabilities. Most stablecoin issuers aren’t equipped for that. Their lending, if any, is typically overcollateralized and limited in scope. So I think regulators will prevent stablecoin issuers from engaging in that kind of banking activity unless they formally become banks. It’s a completely different…

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Filed under: News - @ October 6, 2025 9:30 am