Stablecoin Issuers Tether and Circle Accused of ’Printing Money’ as Users Miss Out on Yield

Dan Reecer, co-founder of Wormhole, has criticized Tether and Circle for capitalizing on high interest rates without passing benefits to stablecoin holders. Speaking at Mercado Bitcoin's DAC 2025 event, Reecer likened the practice to 'printing money,' as both companies retain yields from U.S. Treasuries backing their tokens.

Tether's Q2 2025 financials reveal $4.9 billion in net profit, with the company's valuation hitting $500 billion in a recent funding round. The lack of yield distribution to users creates an unsustainable dynamic, Reecer argued, noting that investors will eventually demand returns or migrate to alternatives.

Emerging platforms like M^0 and Agora aim to disrupt this model by directing yield directly to applications or end users. Meanwhile, money market funds are gaining traction as vehicles for accessing yield from stablecoin reserve assets.

The stablecoin market continues evolving beyond speculative trading, with cross-border payments and FX services emerging as key use cases. This shift underscores growing demand for utility-driven solutions in digital assets.