\n For the U.S., one intended benefit of the GENIUS Act is to preserve dollar\n dominance in global finance. Stablecoins are currently almost entirely\n USD-denominated. Cementing that dominance via regulation makes sense to\n us, particularly since the European Union is considering the possibility\n of a digital euro, an electronic asset that would function as a central\n bank digital currency. A blockchain-based platform may also relieve some\n participant concerns that the dollar ecosystem leaves holders exposed to\n U.S. government sanctions and asset seizures.\n <\/p>\n \n
Interesting arguments<\/h2>\n
\n As the GENIUS Act has been implemented, discussion has focused on the\n prohibition of interest payments. Issuers argue that the limitation is a\n competitive disadvantage that will keep the asset class from growing or\n realizing its potential\u2014a straightforward and understandable claim, in our\n opinion.\n <\/p>\n
\n The broader financial system, and some regulators, see the prohibition on\n stablecoin interest as a vital protection for the traditional banking\n system\u2014an argument that is a bit more complicated, in our view.\n <\/p>\n
\n The logic of the latter position is that the regulatory limitations on\n stablecoins make them almost equivalent to the U.S. government obligations\n in terms of credit risk. Commercial bank deposits have a similar risk\n level but only up to their FDIC insurance limit. In addition, even though\n deposit insurance brings credit risk to near-sovereign levels, there are\n still inconveniences with bank failures. Reconstructing automated payments\n and direct deposits is a complication, and there can be brief but annoying\n limits in accessing funds. The result is that stablecoins that comply with\n regulations can be considered superior in terms of risk and convenience\n compared to a traditional demand deposit account.\n <\/p>\n
\n If stablecoins could also pay interest, it would be another strike against\n traditional bank accounts. In normal times, interest-paying stablecoins\n would mainly be a bank profit question\u2014with a new competitor, existing\n banks may need to pay more for deposits. But because banks have more\n lucrative investment options than just a 90-day T-bill, that\u2019s not an\n existential threat, in our assessment. They could easily compete on price\n with a stablecoin, even if they\u2019d rather not.\n <\/p>\n
The bigger risk is what happens in times of banking stress.<\/p>\n
\n Banks facing depositor flight typically rely on two factors: interest and\n time. For accounts holding less than the FDIC insurance limit of $250,000,\n banks can offer better rates, a tactic that is usually effective. With\n larger accounts, banks try to take advantage of the inherent delays\n depositors face when trying to open multiple accounts and shift funds.\n Delay\u2014coupled with attempts to reassure investors\u2014can be critical to a\n bank\u2019s survival.\n <\/p>\n
\n Stablecoins could upend this playbook. Regulations require the entire\n asset class to be backed one-for-one by government-like assets, meaning\n that each stablecoin is, in theory, nearly as good as an FDIC-insured\n deposit. In addition, the digital nature of these assets compresses the\n timeline for transfers, with settlement and processing running 24\/7. So,\n for large and small depositors, stablecoins represent a potentially\n attractive exit from a troubled bank, and one that can be executed\n quickly.\n <\/p>\n
\n Given those facts, even in a mild or limited crisis, mass depositor flight\n to stablecoins is a theoretical possibility. Prohibiting stablecoin\n issuers from paying interest at least gives banks a lever to pull\u2014they can\n offer higher compensation for a longer term and thereby retain depositors.\n If stablecoins can compete on that vector as well, then there is a greater\n risk of mass exodus and no realistic means for a bank to counter a run to\n stablecoins, in our assessment.\n <\/p>\n
\n In fact, one could even posit malicious action by stablecoin\n issuers\u2014adjusting rates to unprofitably high levels just to attract\n deposits and spark a bank run, even in the absence of a crisis.\n <\/p>\n \n
Stacking up the argument<\/h2>\n
\n That\u2019s the theory, at least. In practice, our view is that interest\n payments on stablecoins are innocuous, but should probably be avoided for\n now anyway.\n <\/p>\n
\n They\u2019re innocuous, we believe, because interest-paying alternatives to\n bank accounts already abound in the financial system. Money market funds\n have been around for half a century, and government funds offer both\n interest payments and government-level credit risk. There are some\n differences between a money market fund and a stablecoin\u2019s legal\n structure, but nothing that we think will change depositor dynamics in a\n crisis.\n <\/p>\n \n
Stablecoins do not create depositor flight risk<\/h3>\n \n Size of largest money market funds (blue bars) show existing alternatives\n to stablecoins (yellow bar) ($ billions)\n <\/h4>\n \n \n \n ![\"Size](\"https:\/\/www.rbcwealthmanagement.com\/assets\/wp-content\/uploads\/global\/bridging-worlds-tokenization-en-chart-1-corp.png\")
\n \n Source – RBC Wealth Management, U.S. Securities and Exchange\n Commission\n <\/p>\n
\n The column chart compares the sizes of the 19 largest money market\n funds to the value of stablecoins outstanding as of August 2026. The\n largest money market funds range from roughly $450 billion to\n roughly $135 billion in assets under management. The current\n combined value of stablecoins is roughly $300 billion.\n <\/p>\n <\/div>\n <\/div>\n <\/div>\n
\n In fact, there\u2019s really no need for an intermediary at all\u2014if a depositor\n is truly worried about a bank\u2019s health, he or she can easily buy a T-bill\n directly from the U.S. government.\n <\/p>\n
\n So in our opinion, the idea that interest-paying stablecoins somehow\n represent a unique and pressing threat to financial stability is\n inconsistent with actual depositor behavior through multiple episodes of\n financial stress.\n <\/p>\n
We can think of several reasons why depositors stay:<\/p>\n
\n - \n Contractual obligations \u2013<\/strong> It\u2019s typical for banks to tie\n business loans to deposit balances. For these corporate borrowers, there\n is no viable alternative.\n <\/li>\n
- \n Inertia \u2013 <\/strong>Anti-money laundering laws require\n significant documentation that can create annoyances in account opening.\n Avoiding that known inconvenience could be worth more than the potential\n inconvenience of dealing with the FDIC in the future.\n <\/li>\n
- \n Ignorance \u2013 <\/strong>For small depositors, bank accounts may be\n the only vehicle they are familiar with, and even large depositors may\n struggle with the difference in risk profiles between money market\n funds, government bond funds, and U.S. Treasury exchange-traded funds\n (ETFs).\n <\/li>\n <\/ul>\n
\n In short, we think it\u2019s implausible that depositors\u2014who for decades have\n eschewed the existing interest-paying alternatives to traditional bank\n accounts\u2014will suddenly flee in droves to stablecoins.\n <\/p>\n \n
Timing is everything<\/h2>\n
\n Despite the implausibility of threats to the U.S. financial system, we\n think there are two valid arguments against permitting stablecoins to pay\n interest.\n <\/p>\n
\n One is simply the stakes. Even a small probability of financial collapse\n warrants a go-slow approach, in our assessment. Add in the fact that any\n potential systemic run would take place quickly and would likely be\n irreversible, and we believe the arguments in favor of interest payments\n need to be overwhelming. We just don\u2019t see those kinds of benefits.\n <\/p>\n
\n The second argument against stablecoin interest payments is that\n interest-bearing stablecoins would function as a short-maturity, low-risk\n investment option at exactly the time when the world is looking to finance\n long-lived assets, such as government pension obligations, AI data\n centers, and a larger, more robust electrical grid.\n <\/p>\n
\n To the extent that stablecoins pull money from banks, they also make it\n more complicated to fund the U.S. deficit, for instance. It\u2019s true that\n stablecoins put more money into U.S. government securities, but they are\n restricted to maturities of three months or less, and we see no signs of\n funding difficulties at that maturity. Banks, on the other hand, are key\n buyers of longer-maturity Treasuries\u2014a role that stablecoins cannot\n legally fill.\n <\/p>\n
\n Our view is that stablecoins are likely not an existential threat to U.S.\n finance, but \u201clikely\u201d just isn\u2019t good enough. More importantly, we believe\n stablecoins are poorly suited to the current environment, providing little\n realistic benefit to their owners, while also complicating the funding for\n key economic drivers.\n <\/p>\n \n
Token interest<\/h2>\n
\n While much ink is being spilled and lobbying undertaken over the interest\n issue, it\u2019s striking how little discussion there is of what\u2019s\n revolutionary about the asset class: creating a digital representation of\n a real-world asset, a process known as tokenization.\n <\/p>\n
\n There are various definitions of tokenization, but the hallmark is the\n representation of ownership of physical assets in a blockchain or\n digitally verified form. What this means is that anyone with access to the\n digital ledger can instantly know who owns what, and that ownership can be\n securely and nearly instantly transferred between any parties.\n <\/p>\n
\n Without interest, we think of stablecoins as a tokenized dollar; with\n interest, we would think of them as a tokenized government money market\n fund. Strictly speaking, stablecoins are obligations of their issuer, but\n because of the strict regulations on reserves, they function as tokenized\n versions of either currency or money markets.\n <\/p>\n
\n In both cases, stablecoins offer clarity on ownership via the digital\n ledger and fast, low-cost transfer. And because they are by law redeemable\n into physical dollars at a fixed rate, stablecoins bridge the physical and\n digital worlds. Movements in the digital world represent actions in the\n physical world.\n <\/p>\n
\n Tokenization may not sound revolutionary, but it effectively severs the\n current trade-off between establishing certainty of ownership and the\n efficiency of transferring assets.\n <\/p>\n
\n Take real estate, for instance. There, certainty of ownership is\n prioritized through a central register, scrupulously controlled by county\n officials with multiple confirmations before any change is registered.\n It\u2019s safe, but it comes at the cost of slow, inefficient, and expensive\n transfer procedures.\n <\/p>\n
\n On the other side, we have the market for borrowing against receivables,\n which operates largely on emailed spreadsheets. It\u2019s extremely fast and\n efficient, but provides no certainty of who owns what. This lack of\n clarity creates space for abuse, such as repeatedly pledging the same\n collateral to multiple lenders. It was by exploiting these weaknesses in\n ownership recording that First Brands, the now-bankrupt auto parts maker,\n was allegedly able to secure over $2 billion in fraudulent loans.\n <\/p>\n
\n The strength of tokenization is that it satisfies both requirements:\n clarity and efficiency. Blockchain ledgers provide certainty of ownership;\n digital platforms provide an efficient transfer mechanism. Because the\n register is central and public, malicious actors can\u2019t resell the same\n asset multiple times, but legitimate transactions are processed rapidly.\n <\/p>\n \n
Divide and conquer<\/h2>\n
\n In its early stages, tokenization is likely to be mainly a matter for\n large banks as they look to reduce timing risks and costs. That process\n has already begun, and we think it will only accelerate.\n <\/p>\n
\n What is more interesting, in our view, is what tokenization offers in\n terms of collateral expansion and asset divisibility. Right now,\n receivables factoring and trade finance are largely gated by size. Smaller\n companies can\u2019t manage the documentation, and lenders don\u2019t have much\n incentive to work with them. We believe tokenization removes those\n barriers.\n <\/p>\n
\n The potential dollar amounts here are substantial. The Asian Development\n Bank estimates almost $2.5 trillion in unmet international trade financing\n demand, and the U.S. Federal Reserve shows nearly $6 trillion in trade\n receivables held by nonfinancial companies. Unlocking even a small portion\n of these amounts could have a significant real-world impact.\n <\/p>\n
\n Tokenization also facilitates divisibility. Consider a person\u2019s home. In\n the physical world, selling a home is generally an all-or-nothing\n proposition. But tokenization opens the door to a partial sale\u2014a home\n could be represented by 100 tokens, each worth a one percent stake. For\n folks approaching retirement and looking to downsize, this could make it\n easier to slowly liquidate what is often a major asset, instead of just\n hoping for a strong future real estate market to coincide with a\n long-planned retirement date.\n <\/p>\n
\n Divisibility also works in equipment finance markets. Specialized\n financing companies tend to dominate these fields, since the dollar\n amounts are large. But tokenization would open the door to a much wider\n pool of potential lenders. Funding a tractor or other farm implement that\n can cost hundreds of thousands of dollars\u2014even up to $1,000,000 in the\n case of today\u2019s largest and most advanced machines\u2014is a pretty big bite\n for a non-agricultural specialist, but spreading that amount among 1,000\n investors in $1,000 chunks is an easier ask.\n <\/p>\n \n
Tokenization solves different problems for different sectors<\/h3>\n \n \n \n ![\"Tokenization](\"https:\/\/www.rbcwealthmanagement.com\/assets\/wp-content\/uploads\/global\/bridging-worlds-tokenization-en-chart-2-corp.png\")
\n Source – RBC Wealth Management<\/p>\n
\n The graphic presents the key benefits of tokenization across four\n categories of financial needs: residential real estate, commercial\n real estate, trade finance, and receivables factoring. The benefits\n include divisibility of assets and lower transaction costs, both of\n which are more beneficial to the real estate categories, and\n certainty of ownership and wider access to loans, both of which are\n more beneficial to trade finance and receivables factoring.\n <\/p>\n <\/div>\n <\/div>\n <\/div>\n
\n There are limitations to tokenization\u2019s uptake and impact. Legal\n structures need to keep pace. While tokenization can create a known\n ownership claim in the digital domain, courts in the real world will need\n to enforce that claim. Current tokens are relatively straightforward\n contracts, but as more jurisdictions and assets become involved, laws may\n need to be passed or amended to deal with the new structures. Tokenization\n also faces limits from the real world. Financing a tractor via\n tokenization is fine, but someone needs to be able to repossess the\n vehicle if the loan terms aren\u2019t met.\n <\/p>\n \n
Summary<\/h2>\n
\n The focus of the stablecoin discussion on the advisability of paying\n interest seems to us a bit like merchants in seventeenth-century Amsterdam\n fixating on what type of sail arrangements the ships of the newly formed\n Dutch East India Company would use on their voyages. The economic impact\n of that event wasn\u2019t found in the details of the specific transactions,\n but in the transformational nature of the joint-stock company and\n secondary market trading.\n <\/p>\n
\n In a similar vein, stablecoins are a nice-to-have arrow in the quiver of\n money market investors. If the story stopped there, however, we don\u2019t\n think it would amount to much. Instead, we think the true power of\n stablecoins will be felt via the broader acceptance of tokenization and\n the increasingly blurred lines between digital and physical economic\n assets.\n <\/p>\n","protected":false},"excerpt":{"rendered":"
Since the GENIUS Act created a U.S. regulatory framework for stablecoins, debate has centered on whether digital assets can pay interest. We believe that misses the bigger story: the potentially revolutionary nature of tokenization.<\/p>\n","protected":false},"author":15,"featured_media":28712,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"rbcwm_post_date":"2026-08-19T16:25:36","editor_notices":[],"rbc_url_alias":"","rbcwm_featured_desktop_image_position":"","rbcwm_featured_mobile_image_position":"","_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[71],"tags":[],"rbcwm_content_owner":[609],"rbcwm_need":[],"rbcwm_segment":[],"rbcwm_solution":[],"rbcwm_topic":[468],"rbcwm_channel":[],"rbcwm_format":[],"class_list":["post-28711","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","rbcwm_content_owner-pag","rbcwm_topic-global-insights"],"acf":{"rbcwm_subtitle":"Since the GENIUS Act created a U.S. regulatory framework for stablecoins, debate has centered on whether digital assets can pay interest. We believe that misses the bigger story: the potentially revolutionary nature of tokenization.","rbcwm_post_author":[20613],"rbcwm_custom_breadcrumb_text":"","rbcwm_custom_breadcrumb_link_url":"","rbcwm_disclaimers":{"add_disclosures":["Yes"],"perspective_disclaimer":"","expandable":"","omit_from_pages":"","disclaimer_footnote":""},"rbcwm_insight_cta_id":[8484],"rbcwm_pagination":{"next_link":"","next_link_text":"Next article","previous_link":"","previous_link_text":"Previous article"},"rbcwm_video_duration":"","article_time":"","rbcwm_enable_toc":false,"rbcwm_toc_selector":"h2","rbcwm_toc_sub_selector":false},"yoast_head":"\n
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\n \n Source – RBC Wealth Management, U.S. Securities and Exchange\n Commission\n <\/p>\n
\n The column chart compares the sizes of the 19 largest money market\n funds to the value of stablecoins outstanding as of August 2026. The\n largest money market funds range from roughly $450 billion to\n roughly $135 billion in assets under management. The current\n combined value of stablecoins is roughly $300 billion.\n <\/p>\n <\/div>\n <\/div>\n <\/div>\n
\n In fact, there\u2019s really no need for an intermediary at all\u2014if a depositor\n is truly worried about a bank\u2019s health, he or she can easily buy a T-bill\n directly from the U.S. government.\n <\/p>\n
\n So in our opinion, the idea that interest-paying stablecoins somehow\n represent a unique and pressing threat to financial stability is\n inconsistent with actual depositor behavior through multiple episodes of\n financial stress.\n <\/p>\n
We can think of several reasons why depositors stay:<\/p>\n
- \n
- \n Contractual obligations \u2013<\/strong> It\u2019s typical for banks to tie\n business loans to deposit balances. For these corporate borrowers, there\n is no viable alternative.\n <\/li>\n
- \n Inertia \u2013 <\/strong>Anti-money laundering laws require\n significant documentation that can create annoyances in account opening.\n Avoiding that known inconvenience could be worth more than the potential\n inconvenience of dealing with the FDIC in the future.\n <\/li>\n
- \n Ignorance \u2013 <\/strong>For small depositors, bank accounts may be\n the only vehicle they are familiar with, and even large depositors may\n struggle with the difference in risk profiles between money market\n funds, government bond funds, and U.S. Treasury exchange-traded funds\n (ETFs).\n <\/li>\n <\/ul>\n
\n In short, we think it\u2019s implausible that depositors\u2014who for decades have\n eschewed the existing interest-paying alternatives to traditional bank\n accounts\u2014will suddenly flee in droves to stablecoins.\n <\/p>\n \n
Timing is everything<\/h2>\n
\n Despite the implausibility of threats to the U.S. financial system, we\n think there are two valid arguments against permitting stablecoins to pay\n interest.\n <\/p>\n
\n One is simply the stakes. Even a small probability of financial collapse\n warrants a go-slow approach, in our assessment. Add in the fact that any\n potential systemic run would take place quickly and would likely be\n irreversible, and we believe the arguments in favor of interest payments\n need to be overwhelming. We just don\u2019t see those kinds of benefits.\n <\/p>\n
\n The second argument against stablecoin interest payments is that\n interest-bearing stablecoins would function as a short-maturity, low-risk\n investment option at exactly the time when the world is looking to finance\n long-lived assets, such as government pension obligations, AI data\n centers, and a larger, more robust electrical grid.\n <\/p>\n
\n To the extent that stablecoins pull money from banks, they also make it\n more complicated to fund the U.S. deficit, for instance. It\u2019s true that\n stablecoins put more money into U.S. government securities, but they are\n restricted to maturities of three months or less, and we see no signs of\n funding difficulties at that maturity. Banks, on the other hand, are key\n buyers of longer-maturity Treasuries\u2014a role that stablecoins cannot\n legally fill.\n <\/p>\n
\n Our view is that stablecoins are likely not an existential threat to U.S.\n finance, but \u201clikely\u201d just isn\u2019t good enough. More importantly, we believe\n stablecoins are poorly suited to the current environment, providing little\n realistic benefit to their owners, while also complicating the funding for\n key economic drivers.\n <\/p>\n \n
Token interest<\/h2>\n
\n While much ink is being spilled and lobbying undertaken over the interest\n issue, it\u2019s striking how little discussion there is of what\u2019s\n revolutionary about the asset class: creating a digital representation of\n a real-world asset, a process known as tokenization.\n <\/p>\n
\n There are various definitions of tokenization, but the hallmark is the\n representation of ownership of physical assets in a blockchain or\n digitally verified form. What this means is that anyone with access to the\n digital ledger can instantly know who owns what, and that ownership can be\n securely and nearly instantly transferred between any parties.\n <\/p>\n
\n Without interest, we think of stablecoins as a tokenized dollar; with\n interest, we would think of them as a tokenized government money market\n fund. Strictly speaking, stablecoins are obligations of their issuer, but\n because of the strict regulations on reserves, they function as tokenized\n versions of either currency or money markets.\n <\/p>\n
\n In both cases, stablecoins offer clarity on ownership via the digital\n ledger and fast, low-cost transfer. And because they are by law redeemable\n into physical dollars at a fixed rate, stablecoins bridge the physical and\n digital worlds. Movements in the digital world represent actions in the\n physical world.\n <\/p>\n
\n Tokenization may not sound revolutionary, but it effectively severs the\n current trade-off between establishing certainty of ownership and the\n efficiency of transferring assets.\n <\/p>\n
\n Take real estate, for instance. There, certainty of ownership is\n prioritized through a central register, scrupulously controlled by county\n officials with multiple confirmations before any change is registered.\n It\u2019s safe, but it comes at the cost of slow, inefficient, and expensive\n transfer procedures.\n <\/p>\n
\n On the other side, we have the market for borrowing against receivables,\n which operates largely on emailed spreadsheets. It\u2019s extremely fast and\n efficient, but provides no certainty of who owns what. This lack of\n clarity creates space for abuse, such as repeatedly pledging the same\n collateral to multiple lenders. It was by exploiting these weaknesses in\n ownership recording that First Brands, the now-bankrupt auto parts maker,\n was allegedly able to secure over $2 billion in fraudulent loans.\n <\/p>\n
\n The strength of tokenization is that it satisfies both requirements:\n clarity and efficiency. Blockchain ledgers provide certainty of ownership;\n digital platforms provide an efficient transfer mechanism. Because the\n register is central and public, malicious actors can\u2019t resell the same\n asset multiple times, but legitimate transactions are processed rapidly.\n <\/p>\n \n
Divide and conquer<\/h2>\n
\n In its early stages, tokenization is likely to be mainly a matter for\n large banks as they look to reduce timing risks and costs. That process\n has already begun, and we think it will only accelerate.\n <\/p>\n
\n What is more interesting, in our view, is what tokenization offers in\n terms of collateral expansion and asset divisibility. Right now,\n receivables factoring and trade finance are largely gated by size. Smaller\n companies can\u2019t manage the documentation, and lenders don\u2019t have much\n incentive to work with them. We believe tokenization removes those\n barriers.\n <\/p>\n
\n The potential dollar amounts here are substantial. The Asian Development\n Bank estimates almost $2.5 trillion in unmet international trade financing\n demand, and the U.S. Federal Reserve shows nearly $6 trillion in trade\n receivables held by nonfinancial companies. Unlocking even a small portion\n of these amounts could have a significant real-world impact.\n <\/p>\n
\n Tokenization also facilitates divisibility. Consider a person\u2019s home. In\n the physical world, selling a home is generally an all-or-nothing\n proposition. But tokenization opens the door to a partial sale\u2014a home\n could be represented by 100 tokens, each worth a one percent stake. For\n folks approaching retirement and looking to downsize, this could make it\n easier to slowly liquidate what is often a major asset, instead of just\n hoping for a strong future real estate market to coincide with a\n long-planned retirement date.\n <\/p>\n
\n Divisibility also works in equipment finance markets. Specialized\n financing companies tend to dominate these fields, since the dollar\n amounts are large. But tokenization would open the door to a much wider\n pool of potential lenders. Funding a tractor or other farm implement that\n can cost hundreds of thousands of dollars\u2014even up to $1,000,000 in the\n case of today\u2019s largest and most advanced machines\u2014is a pretty big bite\n for a non-agricultural specialist, but spreading that amount among 1,000\n investors in $1,000 chunks is an easier ask.\n <\/p>\n \n
Tokenization solves different problems for different sectors<\/h3>\n
\n\n\n\n Source – RBC Wealth Management<\/p>\n
\n The graphic presents the key benefits of tokenization across four\n categories of financial needs: residential real estate, commercial\n real estate, trade finance, and receivables factoring. The benefits\n include divisibility of assets and lower transaction costs, both of\n which are more beneficial to the real estate categories, and\n certainty of ownership and wider access to loans, both of which are\n more beneficial to trade finance and receivables factoring.\n <\/p>\n <\/div>\n <\/div>\n <\/div>\n
\n There are limitations to tokenization\u2019s uptake and impact. Legal\n structures need to keep pace. While tokenization can create a known\n ownership claim in the digital domain, courts in the real world will need\n to enforce that claim. Current tokens are relatively straightforward\n contracts, but as more jurisdictions and assets become involved, laws may\n need to be passed or amended to deal with the new structures. Tokenization\n also faces limits from the real world. Financing a tractor via\n tokenization is fine, but someone needs to be able to repossess the\n vehicle if the loan terms aren\u2019t met.\n <\/p>\n \n
Summary<\/h2>\n
\n The focus of the stablecoin discussion on the advisability of paying\n interest seems to us a bit like merchants in seventeenth-century Amsterdam\n fixating on what type of sail arrangements the ships of the newly formed\n Dutch East India Company would use on their voyages. The economic impact\n of that event wasn\u2019t found in the details of the specific transactions,\n but in the transformational nature of the joint-stock company and\n secondary market trading.\n <\/p>\n
\n In a similar vein, stablecoins are a nice-to-have arrow in the quiver of\n money market investors. If the story stopped there, however, we don\u2019t\n think it would amount to much. Instead, we think the true power of\n stablecoins will be felt via the broader acceptance of tokenization and\n the increasingly blurred lines between digital and physical economic\n assets.\n <\/p>\n","protected":false},"excerpt":{"rendered":"
Since the GENIUS Act created a U.S. regulatory framework for stablecoins, debate has centered on whether digital assets can pay interest. We believe that misses the bigger story: the potentially revolutionary nature of tokenization.<\/p>\n","protected":false},"author":15,"featured_media":28712,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"rbcwm_post_date":"2026-08-19T16:25:36","editor_notices":[],"rbc_url_alias":"","rbcwm_featured_desktop_image_position":"","rbcwm_featured_mobile_image_position":"","_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[71],"tags":[],"rbcwm_content_owner":[609],"rbcwm_need":[],"rbcwm_segment":[],"rbcwm_solution":[],"rbcwm_topic":[468],"rbcwm_channel":[],"rbcwm_format":[],"class_list":["post-28711","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","rbcwm_content_owner-pag","rbcwm_topic-global-insights"],"acf":{"rbcwm_subtitle":"Since the GENIUS Act created a U.S. regulatory framework for stablecoins, debate has centered on whether digital assets can pay interest. We believe that misses the bigger story: the potentially revolutionary nature of tokenization.","rbcwm_post_author":[20613],"rbcwm_custom_breadcrumb_text":"","rbcwm_custom_breadcrumb_link_url":"","rbcwm_disclaimers":{"add_disclosures":["Yes"],"perspective_disclaimer":"","expandable":"","omit_from_pages":"","disclaimer_footnote":""},"rbcwm_insight_cta_id":[8484],"rbcwm_pagination":{"next_link":"","next_link_text":"Next article","previous_link":"","previous_link_text":"Previous article"},"rbcwm_video_duration":"","article_time":"","rbcwm_enable_toc":false,"rbcwm_toc_selector":"h2","rbcwm_toc_sub_selector":false},"yoast_head":"\n
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- \n Inertia \u2013 <\/strong>Anti-money laundering laws require\n significant documentation that can create annoyances in account opening.\n Avoiding that known inconvenience could be worth more than the potential\n inconvenience of dealing with the FDIC in the future.\n <\/li>\n