Stablecoins have become increasingly popular as a result of restrictions on the US financial system, according to Jerald David, president of Arca Labs.
“So we start thinking about why. We start talking about the opening hours of 9-5 banks,” David said on April 16th at the 2025 Toketisis 2025 event.
Panel discussions center around the rise in cryptocurrencies that can generate yields through retention, staking or lending, like yard coins, or essentially stubcoins.
“Well, 9-5 banking hours won’t work? We have an implementation of a payment system that will come to the market right now.
https://www.youtube.com/watch?v=kqzhvt77xkw
According to David, the need for Stablecoins stems from the fact that traditional US banking infrastructure does not support 24-hour trading. “And this industry, as we all know, is a 24-hour industry.”
Kyc from Stablecoins
We know that customer procedures are an important topic on the panel. A representative from the figure market said that for tax reasons, everyone who owns a stubcoin with a harvest must be KYC-ED.
However, David pointed out that Stubcoin has several use cases beyond yield generation, including payments. “Buying coffee using this stable token doesn’t really require someone AML or KYC.”
Nick Carmi, head of Exchange at Figure Market, suggested that some of the solutions could be trust-based KYC systems that allow users to carry credentials across the platform. KYC is the process used by financial institutions to verify a user’s identity. It aims to prevent fraud, money laundering and other illegal activities by ensuring who the user is.
Currently, users need to complete separate KYC checks for each financial institution or service they use, creating friction and frustration that specifically navigates multiple platforms and explores different crypto ecosystems.
Magazine: Bitcoin payments are undermined by centralized stubcoins
