{"id":47125,"date":"2025-09-12T01:01:32","date_gmt":"2025-09-12T01:01:32","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=47125"},"modified":"2025-09-12T01:01:32","modified_gmt":"2025-09-12T01:01:32","slug":"will-solana-launch-its-own-stablecoin-helius-ceo-calls-it-a-no-brainer","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=47125","title":{"rendered":"Will Solana Launch Its Own Stablecoin? Helius CEO Calls It A No-Brainer"},"content":{"rendered":"
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Helius Labs CEO Mert Mumtaz ignited a fresh round of debate inside the Solana ecosystem on September 10 after floating the idea of a Solana-aligned stablecoin whose reserve yield would be redirected to SOL via buybacks or burns\u2014either as an \u201censhrined\u201d protocol feature or, more likely, through competing digital-asset treasury companies (DATs). \u201cWarming up to the idea that Solana should enshrine a stablecoin,\u201d he wrote, adding that \u201c50% burn of the yield goes back to burning SOL.\u201d Hours later, he reframed the thrust: \u201cit shouldn\u2019t be enshrined, a DAT should do it\u2026 fix it and trillions.\u201d<\/p>\n

Why A Solana Stablecoin Is A No-Brainer<\/h2>\n

Mumtaz\u2019s core critique<\/a> targets what he describes as \u201cyield leakage\u201d from Solana: \u201cStablecoins are commodities, and currently on Solana, there is one that captures all yield and literally funds Solana\u2019s biggest competitor with it!\u201d He argued that, under the US GENIUS Act, stables are readily swappable and issuers will fight aggressively for market share\u2014citing the recent \u201cBachelor-style\u201d scramble among large stablecoin companies to court business. \u201cIf you don\u2019t want to enshrine a Solana-centric stable, then consider digital asset treasury companies<\/a> (DATs)\u2026 The DAT is literally a machine for buying the underlying token.\u201d<\/p>\n

That framing collides with the letter of the new US law. The GENIUS Act<\/a>, signed in July, carves out \u201cpayment stablecoins\u201d as neither securities nor commodities for US federal purposes, consolidating oversight largely under banking regulators and expressly separating them from SEC\/CFTC jurisdiction. Multiple legal analyses and a Congressional Research Service note affirm the statute\u2019s classification.<\/p>\n

In short: Mumtaz\u2019s \u201ccommodity\u201d phrasing is rhetorical, not legal. Still, the law\u2019s most consequential economic detail\u2014stablecoins cannot pass interest to holders\u2014means issuers (or affiliated structures) capture the reserve income and can decide how to use it. That\u2019s precisely the lever Mumtaz wants pointed back at Solana.<\/p>\n

Within hours, one builder publicly accepted the challenge. \u201cWe (@KASTcard) will put 101\u2013103% of all interest income from USDK on Solana, to buyback SOL,\u201d wrote CEO and co-founder of KAST, adding that the buybacks would sit with a foundation that issues a token after a planned TGE and that USDK would be issued with the m^0 foundation as a U.S. \u201cGenius compliant\u201d stable. The 1\u20133% kicker above 100% would be treated as marketing spend. KAST and m^0 have previously disclosed plans to launch programmable, application-specific dollars on the networl; KAST\u2019s consumer app and card already target global stablecoin payments.<\/p>\n

The proposal\u2019s mechanics are straightforward in concept. A native USD stablecoin accrues reserve yield (e.g., from T-bills) at the issuer level; a DAT structure then commits that income stream to buy SOL on the open market and either retire it or recycle it into ecosystem programs.<\/p>\n

Mumtaz even sketched a toy model\u2014\u201cAssume a Solana DAT runs a Solana stable, call it USDmanlet\u2026 [it] earns yield. The DAT takes all the yield and buys SOL with it\u2026 embed it in the ecosystem and take the yield and pump it back\u2026 or into burning SOL.\u201d<\/p>\n

Stablecoin Wars Reach Solana<\/h2>\n

Mumtaz\u2019s \u201cfunding the competitor\u201d barb is aimed squarely at USDC\u2019s economics and Coinbase\u2019s Base L2.<\/a> Coinbase and Circle<\/a> split USDC reserve income, a line item that has grown into a major revenue stream for Coinbase as stablecoin supply has rebounded; Coinbase incubated Base, an Ethereum Layer-2 that has quickly become a high-throughput venue for on-chain activity.<\/p>\n

None of that is nefarious\u2014USDC\u2019s terms are clear\u2014but for Solana purists it is strategically suboptimal to let billions in Solana-settled stablecoin activity originate issuer profits that are then reinvested in a rival\u2019s stack. That is the \u201csimple problem\u201d Mumtaz says he wants to fix, whether by enshrining or (more plausibly) by market-driven competition among issuers and DATs.<\/p>\n

Multicoin Capital co-founder and managing partner Tushar Jain agreed<\/a> via X: \u201cOne of the best things about Solana\u2019s culture is adopting good ideas from other ecosystems. Hyperliquid\u2019s idea to encourage stablecoin issuers to buy HYPE with USDH interest is a powerful way to drive REV. Why should Circle keep all of the interest revenue from USDC on Solana?\u201d<\/p>\n

For now, this is only a proposal\u2014there is no SIP or governance vote to \u201censhrine\u201d anything at the protocol layer, and Mumtaz himself emphasized the market-driven DAT route. Whether the proposal takes the form of competing issuers pledging buybacks, a canonical \u201cecosystem stable,\u201d or a more modular treasury program, the endgame Mumtaz sketched is unambiguous: stop leaking yield, and point it at SOL.<\/p>\n

At press time, SOL traded at $228.<\/p>\n

\"Solana<\/div>\n","protected":false},"excerpt":{"rendered":"

Helius Labs CEO Mert Mumtaz ignited a fresh round of debate inside the Solana ecosystem on September 10 after floating the idea of a Solana-aligned stablecoin whose reserve yield would be redirected to SOL via buybacks or burns\u2014either as an \u201censhrined\u201d protocol feature or, more likely, through competing digital-asset treasury companies (DATs). \u201cWarming up to […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-47125","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/47125","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=47125"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/47125\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=47125"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=47125"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=47125"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}