Stablecoin Yield Race Misses the Real Metric That Will Decide Winners, Says Falcon Finance Executive

Yield bearing stablecoins grew nearly 300% over the past year, and market watchers at 21Shares expect the sector to grow past $50 billion in 2026. New platforms keep announcing 3% or 4% returns on balances that used to pay nothing. Artem Tolkachev, chief RWA officer at Falcon Finance, argues this growth is chasing the wrong target.

Why Yield Alone Doesn’t Build Lasting Demand

According to Tolkachev, yield is simple to copy and just as simple to lose to a competitor. A 3% return looks unremarkable next to a tokenized Treasury fund offering something similar with less complexity. If yield is the only reason someone holds a stablecoin, they’ll move to whatever pays slightly more the following quarter. He argues that yield attracts attention but doesn’t guarantee actual use, since a token that only sits idle can’t be posted as margin, moved between platforms, or relied on during volatile markets.

Collateral Acceptance Is the Real Test

What matters more, Tolkachev says, is whether trading venues, lenders, and exchanges will accept a stablecoin as collateral. That means being usable for margin, getting fair loan-to-value terms in lending markets, and moving between platforms without heavy losses from haircuts. Without this kind of acceptance, new stablecoin supply risks becoming what he calls “stranded collateral,” tokens that technically exist and earn interest but serve no real function in the market.

Regulation Sets the Floor, Not the Finish Line

The GENIUS Act’s implementing rules are due by July 18, though the law doesn’t take full effect until 120 days after those rules are published, or 18 months after signing, whichever comes first, putting full effect sometime between late 2026 and January 2027. Tolkachev notes that clearing this regulatory bar proves legitimacy but doesn’t automatically make a token attractive as collateral. That requires separate work: standardized pricing and redemption, updated risk frameworks at exchanges and lending platforms, and the ability to move collateral across venues without friction.

Collateral Status Builds Over Time, Yield Doesn’t

Tolkachev’s central argument is that collateral acceptance compounds, since each venue that accepts a token makes the next one more likely to follow, while yield can disappear the moment a rival offers more. He believes the stablecoins that matter most by 2027 will be the ones usable as margin, working capital, and reliable collateral for lending protocols, not simply the ones offering the highest headline rate.