Stablecoin rewards under attack by banks ‘to maintain monopoly' – Brian Armstrong

**Stablecoin Market Faces Banking Pressure as USDT, USDC, and USDe Hit Record Inflows**

Coinbase CEO Brian Armstrong warns that traditional banks are targeting stablecoin rewards programs to preserve their financial monopoly, even as major stablecoins experience unprecedented capital inflows. USDT, USDC, and USDe have registered record-breaking investment volumes, signaling strong institutional and retail demand for cryptocurrency-backed stable assets.

However, Armstrong highlights a concerning trend where stablecoin funds are migrating "off the grid," potentially moving away from regulated exchanges toward decentralized finance (DeFi) platforms. This shift represents a significant challenge for traditional banking institutions, which view stablecoin yield opportunities as direct competition to conventional savings products.

The banking sector's resistance to stablecoin rewards reflects broader tensions between legacy financial systems and the rapidly evolving blockchain ecosystem. As Bitcoin and cryptocurrency adoption accelerates, stablecoins have emerged as crucial bridges between traditional finance and digital assets, offering users dollar-pegged stability with DeFi yield potential.

This regulatory pressure could reshape the stablecoin landscape, forcing projects to navigate between compliance requirements and maintaining competitive advantages in the burgeoning cryptocurrency market. The outcome may determine whether decentralized finance can truly challenge traditional banking dominance.