Source: Cointelegraph Original: "{title}"

Arca Labs President Jerald David stated that the rise of stablecoins is due to the limitations of the U.S. financial system, particularly the limited banking hours and the lack of non-U.S. dollar trading pairs.

On April 16, David mentioned during a panel discussion at the TokenizeThis 2025 event, "When we start to think about the reasons, we talk about the 9-to-5 banking hours."

The panel discussion focused on yield coins, which are cryptocurrencies (such as stablecoins) that can generate returns through holding, staking, or lending.

"Clearly, the 9-to-5 banking hours are not working. There are some payment systems about to launch that combine yield-generating tools with stable tokens very well," David said.

David indicated that the demand for stablecoins arises from the inability of traditional U.S. banking infrastructure to support round-the-clock trading. "And we all know that this industry operates 24/7."

Know Your Customer (KYC) procedures were a significant topic in the expert discussion. A representative from Figure Markets stated that, for tax reasons, all users holding yield-generating stablecoins must complete KYC.

However, David pointed out that stablecoins have other uses beyond generating yields, including payments. "There is no need to require users to complete anti-money laundering (AML) or KYC procedures just to buy a cup of coffee with a stable token."

Figure Markets exchange head Nick Carmi suggested that one solution might be to establish a trust-based KYC system that allows users to share their identity verification information across different platforms. KYC is a procedure used by financial institutions to verify user identities, aimed at preventing fraud, money laundering, and other illegal activities by confirming user identities.

Currently, users must complete KYC verification separately for each financial institution or service they use, creating barriers and inconveniences—especially for those who need to switch between multiple platforms or explore different crypto ecosystems.

Related: Federal Reserve Chair Powell reiterates support for stablecoin legislation.

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