The growth of non-USD stablecoins has stagnated, often misattributed to lack of demand. In reality, the issue lies in the supply side, driven by banking regulations that inhibit market-making in non-USD currencies. The article argues that stringent capital requirements from Basel III have created a "Liquidity Vacuum" in non-USD corridors. Daily non-major foreign exchange flows exceed $320 billion, indicating robust demand for non-USD cross-border settlements. However, banks are now constrained by the need to hold high-quality liquid assets (HQLA), which favor reserve currencies like USD, EUR, and JPY. This bias discourages banks from holding non-USD inventories, as they currently face penalties due to stricter liquidity coverage ratios and market risk capital requirements. The Liquidity Coverage Ratio (LCR) forces banks to maintain a stock of HQLA that can be quickly converted into cash during stress scenarios, disadvantaging non-USD currencies. For instance, if a bank wants to trade Brazilian Real (BRL) or Mexican Peso (MXN), it must hold additional USD assets to offset the regulatory burdens associated with them. The Basel framework's treatment of currencies is uneven, penalizing those in thinner markets, which further complicates banks' willingness to engage in non-USD transactions. The Fundamental Review of the Trading Book (FRTB) imposes capital charges based on liquidity horizons, assuming it will take longer to exit positions in less active currencies, thus increasing capital requirements for non-USD operations. The article highlights that Global Systemically Important Banks (G-SIBs) face additional capital surcharges, which further incentivizes them to limit their exposure to non-USD corridors. This creates a perverse situation where banks avoid complexity in their operations, preferring a USD-centric model that is easier to manage under regulatory scrutiny. The overall regulatory environment leads to a lack of liquidity for non-USD stablecoins, necessitating a decentralized finance (DeFi) approach to liquidity bootstrapping as traditional methods are unlikely to resolve this crisis.