Stablecoin giants like Tether and Circle are profiting from the current high-interest rate environment while stablecoin holders see none of the returns, said Wormhole’s co-founder, Dan Reecer. He said the companies are effectively “printing money” by keeping the yield from the U.S. Treasuries backing their tokens. Tether, for example, reported $4.9 billion in net profit in the second quarter of the year. That has seen the company’s valuation soar to a reported $500 billion in a new funding round. As interest rates remain elevated, Reecer suggested it’s only a matter of time before users expect a share of that yield or move their funds elsewhere. Platforms like M^0 and Agora are already responding to that demand, he suggested. These projects allow stablecoin infrastructure to be built in a way that routes yield to applications or directly to end users, instead of the issuer capturing all of it. Tether and Circle likely do not share the yield generated from their stablecoins directly with users as doing so could draw the ire of regulators. An alternative that’s steadily growing are money market funds, which allow investors to gain exposure to the yield behind these stablecoins. The stablecoin market is evolving towards real-world use cases, including cross-border payments and FX services, with innovations like tokenized money market funds being used as collateral on exchanges.