XRP News Today: XRP Under Pressure as US Banks Push Back on Crypto
How Net Interest Margins Keep Banks Profitable
For context, US banks pay negligible interest to depositors. Banks then lend depositors’ money to corporations at a higher interest rate. The difference between lending and depositor interest rates is referred to as the net interest margin (NIM). Net interest margins are a crucial component of bank earnings. The higher the NIM, the greater the potential for earnings, subject to credit conditions and demand.
Why Yield-Bearing Stablecoins Threaten Traditional Banking
The evolution of a regulated stablecoin market, which offers significantly higher yields than interest on fiat currency deposits with banks, would shift deposits from TradFi to DeFi. US banks would lose their monopoly and…
