Expert Insights on Treasury and Liquidity

Yield vs. Speed: The New Dynamics of Stablecoins

Two developments this week add an important layer to the stablecoin and deposit conversation — and they’re best understood together. First, market infrastructure is moving toward always-on settlement.The New York Stock Exchange announced plans to launch a 24/7 trading platform for blockchain-based securities, with near-instant settlement on digital rails. That’s a meaningful shift from periodic…

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Impact of Credit Card Interest Rate Caps on Borrowers

The proposed 10% cap on credit card interest rates could significantly impact consumer credit markets, particularly for high-risk borrowers. Analysts warn it may lead to increased fees and tighter lending standards rather than lower costs. The ongoing debate emphasizes how regulatory changes can create unintended consequences, affecting access and affordability in credit.

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U.S. Bank Interest Margins: Insights for 2026 Expansion

U.S. bank net interest margins are entering 2026 with notable momentum. After expanding for seven consecutive quarters, the setup remains constructive as rate cuts work their way through funding costs and loan demand continues to recover. Lower deposit costs have begun to flow through balance sheets, while loan production has rebounded and asset yields have…

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How Stablecoins Transform Payment Infrastructure

The discussion on stablecoins has evolved, highlighting their role not as deposit competitors but as essential components of market infrastructure. Moody’s 2026 outlook forecasts significant increases in stablecoin transaction volume driven by institutional use. This suggests stablecoins enhance liquidity dynamics rather than displacing traditional deposits, leading to a hybrid financial landscape.

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Stablecoins and Deposit Substitution: Key Insights for Financial Stability

The dialogue on stablecoins and deposit substitution is evolving, highlighting their modest impact on U.S. bank deposits. Currently at about 1.5% of deposits, stablecoins influence the banking landscape through direct substitution, recycling, and restructuring. While not an immediate threat, their growth could affect deposit stability and liquidity, prompting shifts in funding dynamics.

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Year-End Funding Insights: Market Plumbing Matters

In Q3 2025, domestic deposits rose for the fifth consecutive quarter, driven by uninsured balances. Money market funds reached $7.73 trillion, indicating ongoing shifts in funding preferences. Meanwhile, the Federal Reserve is exploring stablecoins’ potential, highlighting a trend that integrates liquidity operations and digital finance strategies into future discussions.

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SRF & Repo Markets: What Late-2025 Taught Us About Liquidity Backstops

The Federal Reserve’s Standing Repo Facility (SRF) has evolved to operate without an aggregate cap, allowing for unlimited liquidity based on eligibility and collateral. Usage increased significantly in late-2025, primarily under stress conditions, yet the SRF remains a backstop for funding, emphasizing the importance of collateral management in liquidity strategies.

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The Consumer Credit Picture Is Getting Harder to See

The health of U.S. consumers is increasingly complex due to the rise of private credit, which is set to grow to nearly $140 billion in lending. This shift complicates traditional assessments, as banks focus on higher-credit borrowers, causing fragmentation and uncertainty in consumer spending patterns and credit availability.

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Loan Yields Push Margins to New Highs — Even as Funding Headwinds Persist

In the third quarter, the banking sector experienced improved net interest margins, the highest since 2019. Asset repricing, stable credit spreads, and a shift in asset mixes contributed to this. Deposit costs showed signs of stabilization, with increased deposit fees noted. Future margins will depend on policy easing and market dynamics.

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