What is an "acceptable" stablecoin? Dollar-pegged stablecoins are similar to narrow banks. The issuer accepts dollars and invests these dollars in risk-free bonds. In nominal dollar terms, the only risk-free bond is U.S. Treasury securities. Specifically, since stablecoin issuers must be able to provide physical dollars when holders redeem, they only invest in short-term Treasury bills (T-bills), which are bonds with maturities of less than one year. With almost no duration risk, its trading behavior is almost equivalent to cash.

For example, Tether USD (USDT):
1. Authorized Participants (AP) will transfer USD into Tether's bank account.
2. Tether creates 1 USDT for every 1 dollar deposited.
3. In order to generate returns on these dollars, Tether will purchase Treasury bills (T-bills).
For example: If AP deposits 1,000,000 USD, they will receive 1,000,000 USDT. Tether uses this 1,000,000 USD to purchase an equivalent amount of T-bills. USDT itself does not pay interest, but these T-bills effectively pay the Federal Reserve funds rate, which is currently around 4.25%~4.50%. Therefore, Tether earns a net interest margin (NIM) of 4.25%~4.50%.
In order to attract more deposits, Tether or related financial institutions (such as cryptocurrency exchanges) will pay a portion of the NIM to users who are willing to stake USDT. Staking means locking USDT for a period of time in exchange for interest earnings.

The redemption process of stablecoins is as follows:
1. Authorized Participant (AP) sends USDT to Tether's cryptocurrency wallet.
2. Tether sells corresponding T-bills according to the dollar amount corresponding to USDT.
3. Tether transfers 1 dollar corresponding to each USDT into AP's bank account.
4. Tether destroys the corresponding USDT, removing it from circulation.

Tether's business model is very simple: receive US dollars, issue digital tokens on a public blockchain, invest the US dollars in T-bills, and earn a net interest margin (NIM).
Bessent will ensure that the stablecoin issuers supported by the Empire's tacit approval can only deposit US dollars in chartered American banks or invest in Treasury bonds. There will be no "flashy" operations.