Can Seigniorage Be Used in Non-Algorithmic Stablecoin Models?

The core concept of seigniorage ▴ profit from issuing currency ▴ is generally associated with algorithmic models where the protocol issues the stablecoin. However, a form of profit generation similar to seigniorage can exist in centralized stablecoins if the issuer earns interest on the reserve assets.

This interest is not strictly seigniorage but serves a similar function of profit for the issuer.