NON-USD STABLES AREN'T STUCK BECAUSE OF “NO DEMAND”

Summary from the TLDR Crypto newsletter

The real blocker for non-USD stablecoins isn't user demand for non-USD settlement, it's bank supply, constrained by post-2008 regulation that makes holding and market-making “non-reserve” FX inventory balance-sheet expensive, operationally messy, and capital-inefficient. As non-USD liquidity can be “trapped” by jurisdictional frictions and is treated as less stress-monetizable, banks rationally retreat to a USD hub-and-spoke model, leaving emerging market or non-major corridors in a structural liquidity vacuum. On-chain FX that depends on traditional bank market-making is structurally doomed, and non-USD stables need DeFi-native liquidity bootstrapping mechanisms.