Stablecoins have emerged as a transformative force within the cryptocurrency landscape, largely due to the inherent limitations of the U.S. banking system. During a recent panel discussion at TokenizeThis 2025 in New York City, Jerald David, the president of Arca Labs, elaborated on the significance of stablecoins and their role in facilitating 24/7 transactions in an otherwise constrained financial ecosystem.
David pointed out that the traditional banking hours of 9 AM to 5 PM fail to accommodate the growing demand for seamless, round-the-clock banking services. As he noted, “Well, nine-to-five banking hours don’t work, right?” This sentiment echoes a widespread frustration among consumers who seek the flexibility to transact at any time, a need that stablecoins effectively address.
Furthermore, the discussion highlighted the potential of yield-bearing stablecoins, which allow users to generate income through practices such as holding, staking, and lending. These innovative financial tools represent a significant evolution in the cryptocurrency market, granting users more versatility and control over their funds.
One of the kernels of the discussion revolved around Know Your Customer (KYC) regulations, a topic that has been under scrutiny as the market evolves. According to a representative from Figure Markets, owners of yield-bearing stablecoins may soon be required to comply with KYC procedures for taxation purposes. However, David challenged this notion by stating, “Using this stable token to buy a cup of coffee is not something that really should require AML or KYC for somebody.”
This conversation brought forward the idea of a trust-based KYC system that simplifies identity verification across platforms, reducing the friction and frustration users face today. Navigating multiple KYC checks for numerous financial institutions can be daunting, particularly for users engaged in multiple crypto exchanges or platforms.
In conclusion, the rise of stablecoins stems not only from a need for financial flexibility but also from the evolution of market demands that challenge the status quo. As the industry continues to mature, it will undoubtedly further address these challenges while enhancing user experience and compliance.
