Pro
Yield for Me, Not for Thee
Key Insights
- U.S. banks capture an 8:1 spread on savings deposits and a 46:1 spread on checking deposits across a $17.50 trillion base.
- Net Interest Income from depositor funding accounts for 40-50% of total revenue for the Big 4.
- GENIUS blocked direct issuer-paid interest, then exchange and wallet “rewards” emerged as high-yield checking accounts for depositors. Now, Section 404 of the Senate Banking Committee’s revision to the CLARITY bill aims to remove that option.
- When banks failed to satisfy depositors last time, Money Market Mutual Funds' AUM increased by over 4600% from $4 billion to $186 billion between 1977 and 1981.
- If stablecoin products force deposit pricing toward market rates, banks’ net-interest margins compress first, and any increase in borrowing costs is mainly a repricing of previously subsidized bank margins, not proof that credit itself disappears.
Introduction
Let us know what you loved about the report, what may be missing, or share any other feedback by filling out this short form. All responses are subject to our Privacy Policy and Terms of Service.
Dillon is a Research Analyst on the Protocol Research team. He previously worked as an Automation/Mechatronics Engineer at Flex, Nike, and Target after graduating with a BSE in Mechanical Engineering from the University of Michigan - Ann Arbor. While he has maintained an interest in robotics, his interests lie in DeAI, privacy, prediction markets, and, more recently, quantum computing.
Mentioned Assets