Traditional banks could see their market dominance challenged by the rise of stablecoins and tokenized real-world assets as these digital currencies move beyond their current niche uses.

Moody’s Investors Service Digital Economy Group associate vice president Abhi Srivastava told crypto media that stablecoin use remains “limited” for now, even though the sector’s market capitalization climbed past $300 billion by the end of last year. 

While the role of these assets in cross-border commerce and on-chain finance is expanding, the existing US payment landscape is currently fast and trusted enough to keep disruption at bay. 

Srivastava observed that “for the banking sector, at this stage, disruption risk appears limited,” largely because US rules prevent stablecoins from paying yield to holders.

According to him, domestic deposits are unlikely to be replaced at scale while these yield restrictions remain in place. However, long-term growth in stablecoins and tokenized RWAs—physical or financial assets represented by blockchain tokens—could eventually trigger deposit outflows. 

Such a trend would reduce the lending capacity of traditional banks by placing “pressure” on their core business models, he added.

Legislative gridlock over yield and oversight

Regulatory policy regarding stablecoins has turned into a major point of contention between the crypto industry and the banking sector. The primary concern centers on yield-bearing stablecoins, which banks fear will directly compete for their customers.

This specific issue has become a major stumbling block for the Digital Asset Market Clarity Act of 2025, or the CLARITY Act.

The Digital Asset Market Clarity Act of 2025, or the CLARITY Act, has hit a wall in Congress as lawmakers struggle to balance the interests of the crypto industry with those of the bank lobby. The framework was designed to set clear rules for asset classification and regulatory oversight, but it stalled after major players like Coinbase voiced opposition to specific provisions.

The ban on yield-bearing stablecoins and a lack of legal safeguards for open-source developers remain the primary points of contention. 

Banks have lobbied heavily against allowing stablecoins to offer interest, fearing such a move would trigger massive deposit outflows and sap their ability to provide loans. Srivastava warned that over time, the growth of tokenized RWAs—physical assets represented on a blockchain—could place significant “pressure” on traditional financial institutions.

Senator Thom Tillis of North Carolina recently signaled plans to introduce a compromise draft to bridge the gap between crypto firms and traditional banks. However, this updated proposal has already faced resistance and remains unreleased to the public. 

Key Takeaways

• A security breach affecting KelpDAO’s rsETH product on April 20 created cascading effects throughout Solana’s DeFi infrastructure
• Stablecoin lending platforms across the network have experienced dramatic spikes in utilization metrics
• Jupiter Lend currently shows 99% utilization with only $81 million remaining from its $421 million USDC reserves
• Both Kamino and Marginfi face severe liquidity constraints as borrowing rates exceed 8%
• The available capital for lending across Solana’s ecosystem has reached critically low levels

A security incident targeting KelpDAO’s rsETH infrastructure on April 20, 2026, has triggered widespread disruption across the Solana blockchain’s decentralized finance landscape.

The repercussions materialized quickly. Capital started evacuating from DeFi applications, creating a squeeze on stablecoin availability throughout Solana’s lending infrastructure. Multiple prominent platforms now operate with minimal reserves remaining.

Jupiter Lend faces particularly acute pressure. The protocol manages $421 million in total USDC deposits, of which $340 million has been distributed to borrowers. When factoring in mandatory reserve requirements, the platform operates at approximately 99% capacity. Current annual percentage yields for lenders stand at 4.36%.

Kamino Prime Market experiences similar stress conditions. Data indicates total USDC deposits of roughly $186.8 million against outstanding loans of $178.8 million. This configuration produces utilization approaching 96%, while lending yields have climbed to 8.92%.

Kamino’s Main Market exhibits comparable dynamics. The platform holds approximately $172 million in USDC deposits supporting $164 million in active loans. Utilization metrics hover around 95.75%, with lending returns reaching 10.2%.

Secondary Platforms Experience Significant Pressure

Marginfi data reveals USDC lending utilization at 88.32%, accompanied by lending yields of 7.65%. Save Finance, the rebranded iteration of Solend, has witnessed utilization climb beyond 70%, with corresponding lending rates at 3.9%.

These metrics demonstrate that liquidity stress extends well beyond flagship platforms. The pressure has permeated Solana’s entire lending infrastructure.

Elevated utilization percentages indicate extremely limited USDC availability for new borrowers. Users requiring access to capital face restricted options alongside escalating costs.

The constricted market conditions have additionally impacted derivative markets tracking Solana’s token valuation. Prediction markets estimating Solana above $150 during the April 13–19 window show only 0.4% probability on the affirmative side. These markets lack actual USDC trading volume, undermining their credibility as price signals.

Market Data Reveals Investor Sentiment

For April 16, certain prediction markets price Solana exceeding $100 at 100% certainty. However, with zero verifiable transaction volume supporting this figure, the indicator provides minimal analytical value.

Affirmative position shares betting on Solana reaching $150 by mid-April trade at merely 0.4 cents while offering $1 payouts upon correct resolution. This potential 250x multiplier underscores profound market doubt regarding imminent price appreciation.

The liquidity impact stemming from the KelpDAO security incident remains unresolved. Borrowing costs continue their upward trajectory as utilization persists at heightened levels throughout Solana’s primary lending protocols.

As of April 20, Kamino’s Main Market lending yield of 10.2% represents the peak rate documented among impacted platforms.

Strategy co-founder Michael Saylor has hinted at another large Bitcoin purchase, just a week after the company disclosed that it bought around $1 billion of Bitcoin in the second week of April. 

Strategy disclosed last Monday that it acquired 13,927 Bitcoin for $1 billion between April 6 and 12, at an average price of $71,902 per coin, posting “Think ₿igger” the day before the filing. 

However, Saylor posted “Think Even ₿igger” on X on Sunday along with a chart of Strategy’s purchase history, something he has historically done to hint at another purchase announcement. 

It comes just days after the Bitcoin treasury company proposed to increase the frequency of dividend payments to stockholders in the hopes of stabilizing the price and growing demand.

In a video presentation to shareholders shared by Saylor on Friday, Strategy CEO Phong Le said the company hopes to pay dividends twice a month — on the 15th and again at the end of each month — for a total of 24 a year at the current rate of 11.5%.

“What do we think this will do, it should stabilize the price, dampen cyclicality, drive further liquidity and grow demand,” Le said.

A preliminary proxy filing was sent to the US Securities and Exchange Commission on Friday. The definitive proxy filing is expected on April 28, when voting opens to approve or reject the measure. Voting closes on June 8 at the annual shareholder meeting, with the new schedule expected to start mid-July if approved.

Strategy is proposing to pay semi-monthly dividends on $STRC, instead of monthly. No change to the annual dividend obligations or dividend rate. These proposed changes are intended to stabilize price, dampen cyclicality, drive liquidity, and grow demand. pic.twitter.com/jHFRaDz6oP

— Michael Saylor (@saylor) April 17, 2026

Demand plunging after dividend dates, said Le

Le said one of the main reasons for the proposed change was to address a drop in demand after investors were no longer eligible for the upcoming dividend, which cooled buying activity and slowed the pace of new share sales.

“If we were to move forward with paying STRC to semi-monthly, we would be in category 1, the only preferred in the world that pays semi-monthly dividends. We think this is unique and this is attractive,” he added.

The company went through dozens of iterations before settling on the semi-monthly schedule and had considered weekly and even daily dividend record dates. The NASDAQ stock exchange, which lists Strategy’s stock, follows industry rules requiring a minimum gap of ten days between the record date and the payment date, according to Le.

Related: Strategy’s Michael Saylor signals impending Bitcoin purchase

Strategy has the largest Bitcoin (BTC) stash among publicly traded companies with 780,897 coins, worth $58.2 billion, according to Bitbo. It’s also one of the most frequent buyers with regular weekly purchases.

The company’s stock (MSTR) jumped 11.8% on Friday to $166.52. It’s still down more than 47% over the past year, according to Google Finance.  

Strategy’s Bitcoin buying comes despite the company sitting on significant unrealized losses on its holdings. Earlier this month, Strategy reported in its first-quarter financial results that its unrealized losses on digital assets amounted to $14.46 billion.

Magazine: Will the CLARITY Act be good — or bad — for DeFi?