Stablecoin 2.0: Who Receives the Interest from Your Stablecoins?

The reserves backing USDT and USDC generated over a billion dollars for Tether and several hundred million for Circle in the second quarter. Holders of these tokens received nothing. Reeve Collins, co-founder of Tether, wants to detach this yield from the stablecoin: this is what he calls "Stablecoin 2.0".

The Reserves of Stablecoins Generate Billions

Tether had $184.6 billion of USDT in circulation in the second quarter of 2026. Its reserves, notably invested in U.S. Treasury bills, yielded $1.5 billion in net operating profit for the quarter.

Circle earned $667.7 million in reserve revenue during the same period, accounting for nearly 95% of its revenue.

Coinbase, which distributes USDC, received $324.6 million from Circle in the quarter. The amount of this compensation depends on the USDC held on the platform.

These revenues go exclusively to the issuer. They can then distribute a portion to their distributors, as is the case between Circle and Coinbase. The holder of the stablecoin retains a token worth 1 dollar.

Reeve Collins Wants to Share Reserve Revenues

A trading platform can hold hundreds of millions of dollars in stablecoins and facilitate billions for its clients. However, the revenue generated by the reserves remains under the control of the issuer.

Reeve Collins believes that platforms should be able to reclaim a portion of this to pass on to their clients.

He detailed his vision on September 23 in an interview with Wu Blockchain.

The reserves are visible on-chain, and the revenues they generate are separated from the stablecoin, then distributed according to rules defined in the protocol. This is what Collins calls "Stablecoin 2.0".

The stablecoin itself must remain at 1 dollar and retain its function as a means of payment. It thus remains available to be exchanged or redeemed at its target value, while the revenues from the reserves are distributed separately.

STBL Already Separates the Stablecoin from the Yield

Collins co-founded STBL, which already applies this principle. A single deposit gives rise to two tokens. USST circulates as a stablecoin and YLD carries the yield of the collateral.

In Europe, Article 50 of MiCA prohibits issuers of electronic money tokens from granting interest on these tokens. In the United States, the GENIUS Act also prohibits the issuer of a stablecoin from paying a yield to its holders.

Thus, the stablecoin can remain the asset used for payments, while another token carries the yield. Collins says he built his model with these rules in mind.

DeFi is Already Transforming Stablecoins into Yield-Generating Assets

Yield is at the heart of Collins' thinking about stablecoins. However, this question extends far beyond the issuers. For an investor holding capital, the question also arises as to how this capital can be compensated.

In DeFi, several mechanisms allow for yield generation from stablecoins without having to bet on market rises or falls.

Stablecoins can be lent, used to provide liquidity, or integrated into arbitrage strategies.

At the Club 25%, each strategy is examined from this same logic: understanding where the yield comes from, who pays it, and what activity generates it.

The Club 25% is a private club of over 150 investors who manage their savings in stablecoins via DeFi, aiming for 15 to 25% per year, without trading, without volatility, dedicating just a few hours per quarter.

How It Works in Practice:

• A public portfolio of $100,000 managed in real-time: all decisions are documented and explained.
• DeFi opportunities analyzed and audited: you follow step-by-step video guides to invest in selected protocols for their robustness.
• Total sovereignty over your funds: you remain in control of your capital, with no third party having access to your wallet.

Stablecoins have put the dollar on tracks that run 24 hours a day. Reeve Collins poses the following question: who should capture the revenues generated by the assets that serve as reserves for these tokens?