Stablecoins have risen to popularity as a result of limits to the US financial system-specifically preventing banking hours and the lack of a pair of USD nonprofit, according to Jerald David, president of the ARCA Labs.
“So we’re starting to think about why, we started talking about nine-fifth banking hours,” David said in a panel at Tokenizethis 2025 event on April 16.
The panel discussion is centered on produce or, essentially, increasing cryptocurrencies that can produce yield by handling, staking or lending, such as stablecoins.
“Well, nine-fifth banking hours doesn’t work, is it? There are now implementations of payment systems that come to the market soon, that’s a great combination of both instruments that carry the yield as well as stabletokens,” David said.
https://www.youtube.com/watch?v=KQZhvt77xkw
According to David, the need for stablecoins comes from the fact that the traditional US banking infrastructure does not support rotation transactions. “And this industry, as we all know, is a 24 -hour industry.”
KYC for stablecoins
Learn that your customer procedures are a significant topic on the panel. A representative from Figure markets It is said that everyone who owns a harvest-bearing stablecoin needs to be KYC-Ed for tax reasons.
But David taught that Stablecoins have many cases of use beyond the generation of harvest, including payments. “Using this stable token to buy a cup of coffee is not something that should really require AML or KYC for someone.”
Nick Carmi, head of exchange in figure markets, has suggested that part of the solution could be a KYC -based KYC system that allowed users to bring their credentials to the platforms. KYC is a process used by financial institutions to verify a user’s identity. It is meant to avoid fraud, money laundering, and other illegal activities by ensuring users who they claim.
Currently, users must complete separate KYC checks for each financial or service institution they use, creating friction and failure – especially for navigating multiple platforms or exploration of different crypto ecosystems.
Magazine: Payments in Bitcoin are being destroyed by centralized stablecoins
