Solana News Update: Clearer Regulations Help Crypto Yields Close the Gap with Traditional Finance
- Crypto's yield gap with TradFi narrows as LSTs and RWAs drive innovation, with stablecoins and tokenized assets bridging the 8-11% vs. 55-65% disparity. - U.S. GENIUS Act boosted institutional trust in yield-bearing stablecoins by enforcing collateral rules and AML compliance, spurring 300% YoY market growth. - Circle's 4.15% reserve returns and $740M Q3 revenue highlight stablecoin profitability, while embedded solutions make adoption "invisible" in consumer apps. - DeFi crises like xUSD depegging cause
Innovations in liquid staking tokens (LSTs) and real-world assets (RWAs) are closing the yield gap between cryptocurrencies and traditional finance (TradFi), as detailed in a
Clearer regulations, especially following the U.S. GENIUS Act passed in July, have fueled interest in yield-generating stablecoins and RWAs. The legislation introduced strict collateral rules for stablecoins and required Anti-Money Laundering measures, boosting confidence among institutions. Consequently, the market value of interest-earning stablecoins has grown by 300% year-over-year, with new protocols emerging each month to seize this momentum.
Stablecoins, now often backed by assets such as U.S. Treasuries, have become central to crypto yield strategies. Companies like
Tokenized versions of traditional assets like bonds and funds—RWAs—are also gaining momentum. Leading institutions are adopting on-chain settlement for greater efficiency, while tokenized assets are opening up new avenues for passive income.
The adoption of stablecoins and RWAs is advancing quickly, but obstacles remain. A recent DeFi crisis, triggered by the loss of peg in yield-generating stablecoins like
Despite these challenges, the report points to crypto's "biggest opportunity" in narrowing the yield gap. With more institutions entering the space and regulatory structures becoming clearer, the industry could attract major financial players looking for efficient and scalable yield options. As RedStone observed, "Yield-generating assets make up just 8% to 11% of crypto, compared to 55% to 65% of traditional finance," underscoring the significant room for growth, as mentioned in the
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: Crypto's Yield Gap with TradFi Narrows as Staking, RWAs Surge
Yield-bearing Crypto Assets Poised to Grow After Regulatory Clarity (
,2025:newsml_L4N3WO0SG:0-yield-bearing-crypto-assets-poised-to-grow-after-regulatory-clarity-report-says/)Earnings Call Transcript: Circle Internet Q3 2025
Transak CEO: Stablecoins May Integrate Seamlessly into Consumer Apps
DeFi TVL Falls $42B After xUSD Loss
Solana Outperforms Rivals as DEX Volumes Surpass $5B
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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