Jon Quast

The trend is real, but I'd say that debt still needs to come down some.

I would say that the revenue growth rate needs to pick up a little bit more before I'll believe in this story.

Yeah, that's really good, Travis.

Maybe I can just start by oversimplifying how stablecoins work.

Essentially, you put a physical dollar into the system.

They mint a stablecoin that represents that dollar.

They take your dollar, they put it in the bank somewhere, and then they give you the stablecoin, and now you can use it.

You can use the internet money.

In the meantime,

can generate income from the dollar that you gave them.

Whether that's in Treasury bills or something else, they can earn money from the money that you put in.

Now, when you want to return your stablecoin and get your dollar back, you can.

They will then burn that stablecoin, take it out of circulation, and give you the dollar back.

That's how it all works in theory.

Now, when it comes to USDC, the second largest US dollar stablecoin that there is behind Tether

It was co-created with Circle and Coinbase.

They were co-creators in this project.

USDC was losing ground significantly at one point.

That's when Circle and Coinbase struck up this new deal to share revenue in a different way.

Essentially, Coinbase gets all of the USDC interest income now from the stablecoins that are on its platform.