Interesting post by JP Koning on the extent to which Tether is making any money. The short answer he concludes is not very even without the burden of conforming to regulation. The obvious question this begs is how profitable a regulated stablecoin would be.
— Read on jpkoning.blogspot.com/2022/07/how-profitable-is-worlds-largest.html
Tony – From the Outside
Author: From the Outside
After working in the Australian banking system for close to four decades, I am taking some time out to write and reflect on what I have learned. My primary area of expertise is bank capital management but this blog aims to offer a bank insider's outside perspective on banking, capital, economics, finance and risk.
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One thought on “Moneyness: How profitable is the world’s largest stablecoin?”
The FCA and other regulators have been pondering how insolvency would play out and what would need to change to ensure their domestic residents could easily get their money back. There has been plenty of chat about licensing, investment portfolio structure and guaranteed remittance at par. However, one of the other changes that has been discussed is fragmentation of custodial arrangements such that the geographical location of their investment portfolios would have to align with the location of their customers. A very significant increase in operational complexity (and cost).