Stablecoins Need to Offer Yield to Compete, Says Ex-Standard Chartered Tokenization Lead

Alex Man, formerly head of tokenization at Standard Chartered, has emphasized the necessity for stablecoins to provide competitive yields to attract and retain users. In a recent interview, Man explained that the escalating competition within the cryptocurrency market demands that stablecoin issuers reconsider their strategies to deliver added value to users. He pointed out that investors are increasingly aware of the opportunities available to generate returns from their digital assets and that stablecoins lacking yield may lose their appeal in favor of alternatives such as lending protocols or other cryptocurrencies offering user incentives. Man stressed that offering yields is not merely an additional feature but a market imperative, as users expect to be rewarded for holding their digital assets. He added that stablecoin issuers must be inventive in finding ways to provide yields without compromising currency stability or regulatory compliance. Such methods might include investing in low-risk assets or participating in decentralized lending protocols in a cautious and considered manner. Man underscored that the future of stablecoins hinges on their ability to adapt to evolving market demands and deliver genuine value to users.