Tag: Banking (2)

The GENIUS Act Did Not Regulate Stablecoins It Broke Their Business Model

09/02/2025 • Stablecoin, FinTech

Stablecoin reserves shifting offshore while U.S. banks capture yield flows

The GENIUS Act delivers regulatory clarity for stablecoins in the U.S., but at a cost. By eliminating yield on reserves, it destroyed the business model that sustained issuers like Circle. The float has not disappeared, it has shifted offshore, to banks, and into new fee structures. This change may crown Tether king of emerging markets and force U.S. issuers to reinvent themselves.

#Regulation #GENIUSAct #Circle #Tether #Banking #Payments #FloatYield

Banks Will Not Issue Stablecoins They Will Control the Rails Instead

08/26/2025 • Stablecoin, FinTech

Banks managing digital settlement rails with stablecoins moving across them

Banks are unlikely to issue stablecoins directly. Patents, regulations, and compliance costs make it unattractive. Instead, banks will position themselves as infrastructure providers, capturing stablecoin economics through custody, settlement, and creative fee structures while leaving issuance to players like Circle.

#Banking #Payments #DigitalAssets #Regulation #Settlement