Wormhole co-founder Dan Reecer has criticized stablecoin giants Tether and Circle for profiting from high interest rates while not sharing yields with stablecoin holders. Speaking at the DAC 2025 event, Reecer accused these companies of 'printing money' by retaining yields from U.S. Treasuries backing their tokens. Tether reported a $4.9 billion net profit in Q2, with its valuation reaching $500 billion in a recent funding round.
Reecer suggested that users might soon demand a share of these yields or move their funds elsewhere. Meanwhile, platforms like M^0 and Agora are exploring ways to distribute yield to applications or end users. Despite regulatory concerns cited by Tether and Circle, Circle has expanded into yield-bearing tokenized money market funds with its $1.3 billion acquisition of Hashnote. The stablecoin market is increasingly focusing on real-world applications such as cross-border payments and FX services, according to Fireblocks' Stephen Richardson.
Wormhole Co-Founder Criticizes Tether and Circle Over Yield Profits
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