Reeve Collins Redefines Stablecoin With Yield-Liquidity Split Model

Tether co-founder Reeve Collins has launched a new stablecoin protocol, STBL, which debuted on Binance Alpha on September 13, 2025. The project introduces a dual-asset model that separates liquidity from yield, positioning itself as a potential challenger to established stablecoins such as USDT and USDC. This innovation is part of a broader trend in the stablecoin market, where financial instruments are increasingly evolving from mere digital representations of fiat to yield-generating financial assets. STBL is designed to provide users with both the utility of stablecoins for transactions and the ability to retain and benefit from the yield on underlying collateral.

The STBL ecosystem comprises three tokens: USST, the stablecoin backed by U.S. Treasury bonds; YLD, the yield token representing income rights from the collateral; and STBL, the governance token that allows token holders to vote on key protocol decisions. This model addresses a long-standing issue in the stablecoin sector—users typically have to choose between liquidity and yield. By decoupling these elements, STBL enables users to utilize USST for DeFi applications while simultaneously earning interest through YLD tokens. This dual functionality sets STBL apart from existing stablecoins, which either retain yield with the issuer or lock liquidity when generating income.

Avtar Sehra of Libre Finance co-founded the project with Collins, and the protocol is supported by tokenized real-world assets, including products from Franklin Templeton and Ondo. This approach aligns with the growing trend of RWA tokenization, which has exceeded $10 billion in value earlier in 2025. The STBL protocol is also backed by institutional investment, with Wave Digital Assets leading a successful pre-seed funding round. This institutional support underscores the project’s potential to serve as a bridge between traditional finance and decentralized finance (DeFi), offering security and compliance that appeal to institutional investors.

The STBL token is capped at a total supply of 10 billion tokens. Holders gain control over governance functions such as adjusting reserve composition, setting fees, and defining risk policies, enabling them to shape the protocol’s development directly. This governance structure aligns with broader DeFi trends, emphasizing decentralization and transparency, which are increasingly expected by institutional participants. The project’s institutional-grade design, combined with its innovative yield-splitting model, could redefine how stablecoins are used in corporate treasury management, cross-border transactions, and DeFi services.

Binance Alpha, which listed STBL on September 13, plays a pivotal role in facilitating early access trading for promising blockchain projects. The platform provided exclusive airdrop access to Alpha Points holders through its events page, incentivizing community participation and early engagement. Binance Alpha’s involvement signals confidence in the project’s potential to redefine stablecoin dynamics, bridging traditional financial systems with decentralized governance. This listing also enhances liquidity and adoption of STBL, potentially attracting both retail and institutional investors.

The launch of STBL is set against the backdrop of increasing regulatory clarity in the stablecoin space. The U.S. recently passed the GENIUS Act, a comprehensive legislative framework for stablecoins. The act aims to ensure financial stability while promoting innovation by requiring stablecoin issuers to maintain 1:1 reserves and comply with AML regulations. STBL’s compliance with the Genius Act, particularly through its use of U.S. Treasury-backed collateral and transparent governance, positions it as a regulatory-compliant option in a rapidly evolving market. The project also aligns with global regulatory efforts, such as the EU’s MiCA framework and Hong Kong’s recent stablecoin regulations, which emphasize asset-backed reserves and consumer protection.

As the stablecoin market continues to grow—with over $282 billion in supply—competition is intensifying. STBL’s unique approach to liquidity and yield could influence the broader market by offering a decentralized, transparent, and yield-efficient alternative to centralized stablecoins. This innovation may encourage other projects to adopt similar strategies, accelerating the integration of real-world assets into DeFi and expanding the utility of stablecoins beyond traditional use cases. With early adoption and institutional backing, STBL is well-positioned to capture a significant share of the stablecoin market and drive the next phase of evolution in digital asset finance.