Stablecoins won’t replace the banking system, they’ll reshape it. Distribution is the moat, and winners capture the margin.
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Critical GENIUS Act Rules
The bill blocks banks and issuers from paying stablecoin yield directly to depositors. Policymakers fear stablecoins could turn into unregulated deposits, eroding the fractional reserve model. Banks fought hard for this ban: if cash-like tokens paid 4–5% yield, net-interest spreads, the core of banking profits, would collapse.
But regulation rarely kills innovation. It just reshuffles wins.
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Winners Under the GENIUS Act
Banks and fintechs with massive distribution are best positioned to capture interest revenue:
- Big Banks — With distribution already locked in, banks can issue stablecoins and funnel yield through branded on-chain money market funds (MMFs). The spread remains under their control.
- Fintech Platforms — Stripe and Circle are moving fast, each launching its own L1 and stablecoin. Stripe, with its huge customer base, could migrate their millions of merchants on-chain with a vertically integrated stablecoin infrastructure including wallets, payments, embeded finance, on-off ramps, and treasury.
Image by Chuk Okpalugo
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How Companies Can Benefit
For CFOs, the GENIUS Act sets the stage for stablecoin-based treasury hubs. Balances could soon be consolidated, yield-optimized, and cash flow programmatically deployed across markets.