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Business Insider
7 hours ago
- Business
- Business Insider
Congress just passed a landmark stablecoin bill. 5 things to know about the booming corner of crypto.
Wednesday marked a fresh milestone for the cryptocurrency industry, with the Senate passing the GENIUS Act to create a federal regulatory framework for stablecoins. Passing in a 63-30 vote, the GENIUS Act, short for Guiding and Establishing National Innovation for US Stablecoins, will create new guidelines for the issuance and usage of stablecoins. The Act paves the way for banks, fintech firms, and big-name retailers to issue their own stablecoins or weave them into their current payment platforms. 2025 has been a breakout year for crypto. President Donald Trump's vocal support, stablecoin issuer Circle's IPO, and now, stablecoin legislation have all pushed digital assets further into the spotlight. Here are five things to know about what's going on with stablecoins. What is a stablecoin? Stablecoins are a type of crypto meant to hold a steady value to a fiat currency like the dollar. The biggest stablecoins, such as Tether and USD Coin, are "pegged" to the dollar and are backed 1:1 by reserves of cash or cash equivalents like short-term Treasurys. Unlike volatile cryptocurrencies like bitcoin, stablecoins aim for, as the name suggests, price stability. This makes them useful for everyday transactions and digital payments, as well as easily converting other crypto into fiat. What does the Genius Act do? The GENIUS Act outlines requirements for issuing stablecoins. Issuers must back each stablecoin with safe assets at a 1:1 ratio. The Act limits reserves to coins and currency, government money market funds, and other highly liquid assets. Issuers are also required to publish monthly reserve disclosures and comply with anti‑money‑laundering rules. Issuers with over $50 billion in market capitalization are required to provide annual audited financial statements. In the event that a stablecoin issuer goes bankrupt, the legislation ensures that holders of stablecoins would be given priority claims on the issuer's reserve assets. The bill faced hurdles earlier, though. Democrats were concerned that the legislation didn't do enough to prevent conflicts of interest among Congress and members of the executive branch. It took weeks of negotiation before the bill advanced out of the House. Big companies are adopting stablecoins Stablecoins aren't just for crypto enthusiasts — some of the biggest names in the S&P 500 are leaning in as well. Meta and Walmart recently announced plans to explore using stablecoins to streamline payments and reduce transaction fees for consumers. Traditional payment companies like Mastercard and Visa have been integrating stablecoins into their systems for years. Both payments companies have developed blockchain technology that enables settlement in the stablecoin USD Coin and partnered with crypto exchanges. Trump has ties to the stablecoin space The president campaigned on a crypto-friendly platform and has remained a vocal supporter of digital assets so far in his term. In addition to minting meme coins and pushing for less stringent regulation, Trump also has ties to a stablecoin issued earlier this year. World Liberty Financial, a cryptocurrency firm backed by Trump and his sons, launched the USD1 stablecoin in March of this year. The token is backed by short-term Treasurys, dollar deposits, and cash equivalents. Mark Cuban theorized this week that the new Trump smartphone launched this week could include a built-in crypto wallet for the president's $Trump memecoin and USD1. Stablecoins could cause volatility in the Treasury market Since stablecoins are largely pegged cash and cash equivalents, an increase in their use could spike demand for Treasurys as issuers build up their reserves. An uptick in demand for short term government debt could lead to a steepening of the yield curve and increased volatility in the Treasury market. Bank of America predicts that each $1 that leaves traditional banks in favor of stablecoins will lead to $0.90 of incremental demand for US Treasurys.
Forbes
6 days ago
- Business
- Forbes
Stablecoins Are An Opportunity For Banks, Not A Threat
A Tether chart as Paolo Ardoino, chief executive officer of Tether Holdings Ltd., right, speaks ... More during a Bloomberg Television interview in New York, US, on Friday, May 23, 2025. Ardoino discussed the US government's decision to regulate stablecoins and what the GENIUS Act can do to help promote stablecoins. Photographer: Michael Nagle/Bloomberg Stablecoins, such as Tether, are attracting considerable attention. Last year when the Stripe CEO Patrick Collison, called stablecoins 'room-temperature superconductors' for financial services (after paying $1 billion for Bridge), I for one did not view his comments as hyperbolic in the least, and now that Stripe has bought Privy (which has some 75 million stablecoin wallets out there), I think we can safely say that stablecoins are marching into the mainstream. Stablecoin is a misused word. It originally meant a digital asset, some form of token, that had its value maintained at a fixed level with reference to an external benchmark via algorithmic management of supply and demand. Now, however, the word has come specifically to mean a kind of digital asset that is institutionally bound to fiat currency, either by maintaining a 100% reserve in commercial bank deposits in that currency or by holding a 100% reserve high-quality liquid assets denominated in that currency (eg, treasury bills). Globally, stablecoins are on a tear and in almost all cases the cash and assets are the US dollar and dollar securities. The two largest stablecoins out there right now are Tether (USDT; $149 billion) and the USD Coin from Circle (USDC; $62 billion). Circle's IPO, also last week, saw shares jump as high as $103.75 from the offer price of $31 with heavy investor demand. Tether and Circle therefore account for some $240 billion in circulation. This is not much in the $36 trillion US Treasury market, but the growth has certainly focused US Treasury's attention. Why? Well, I agree with Marc Rubenstein's analysis on this: when I bought my first stablecoin, it was in order to play around in 'crypto'. But it is now clear that stablecoins are decoupling from cryptocurrency and their adoption is driven by "practical applications rather than speculation". It seems that Stablecoin transactions, broadly speaking, support real world business. For example, Elon Musk's SpaceX uses stablecoins to repatriate funds from selling Starlink satellites in Argentina and Nigeria, while ScaleAI (the data labelling and AI training company that Meta has bought a 49% stake in, for nearly $15 billion) offers its large workforce of overseas contractors the option of being paid this way. A recent YouGov survey (commissioned by Visa and others) of 500 cryptocurrency users in each of five emerging markets found that stablecoins are increasingly seen as not only a practical application of the new transaction technologies but a 'core application' in the crypto space, offering practical solutions such as currency conversion, remittances and payment for goods. Recent developments look like powering stablecoins across many sectors. Bridge just launched stablecoin issuance APIs that allow developers to issue USDB, its internal stablecoin, or spin up white-labeled stablecoins backed 1:1 by USDB (with free conversion to USDC). And with Bridge as the stablecoin pipes and Privy's wallets as the front-end, users will be able to spin up wallets for their clients while, as Noelle Acheson says, abstracting away the hassle to the point where users need not even know they're using a wallet – with Privy and Bridge integrations, transactions would become as easy as 'click here to pay', and balances could show up in simple and familiar web accounts. The ability to move money around without hassle will undoubtedly reshape the global financial system, because stablecoins are about more than making payments cheaper for supermarkets or easier for small businesses in other countries. Martin Sandbu, writing in The Financial Times, says that the international payment system is on the cusp of huge change for both political and technological reasons. He is right, of course, For one thing, the weaponisation of the dollar-based financial system — note how the US has cut off access to SWIFT in certain circumstances — has prompted quests for alternatives from allies and adversaries alike. (You might see this quest as of central importance in the financial world and perhaps even, as I wrote in my 2020 book The Currency Cold War, a new space race, in which 'to the moon' has a very different meaning.) Friction free. Regulators have concerns. A key official whose job it is to consider the digitalisation of money at a developed world central bank returned from the Spring International Monetary Fund-World Bank meetings with a deep sense of unease. commenting "There is a wall of $!1* money coming our way, and we're doing nothing about it'. He was referring to the central banking community at large. And he's right. He is right for two reasons. The first is that stablecoins threaten central bank control over settlement assets. While some central banks are looking to connect existing payments systems with the next generation token-based infrastructure, others (including the European Central Bank) think that the markets need nothing short of tokenised central bank money and that if they do not provide it then the participants will use stablecoins instead. The second reason is, of course, that these stablecoins are almost all pegged to the US Dollar and the seigniorage accrues not to the Fed or any other central bank but to private operators. These drivers have implications both for America and for the rest of the world. For example, a Russian plan to break the grip of the US dollar through a new international payments network went nowhere are the BRICS summit in Kazan last year. Despite all of the talk of new reserce currencies, dollar-backed stablecoins are the choice of indiviuals and businesses the world over. This is why the policymakers have a genuine concern that if US stablecoins gain widespread usage, there is a risk of 'digital dollarisation' where platforms mean that participants will stay in flexible, liquid digital dollars and effectively undermine national sovereignty in monetary policy. One more important point to make. The discussion about the relationship between stablecoins and banking has been vigorous in recent weeks, but from the bank perspective, I think that stablecoins are an opportunity. Banks and stablecoins are apples and oranges. I am fond of quoting Morgan Ricks, a professor at the Vanderbilt Law School and a former Treasury official, on this. He said The banking technology commentator Tom Noyes says the idea the stablecoins will supplant established retail banking relationships is a bunch of 'hooky' and goes on to make the point that banks are actually well-positioned to take advantage of innovation in this area. I am sure he is right which means that whether you are in the US or anywhere else, your bank, fintech or payment services organisation needs a stablecoin strategy.
Arabian Post
07-06-2025
- Business
- Arabian Post
MEXC Advances Stablecoin Growth Following Strategic USDe Acquisition
MEXC, a prominent digital asset exchange, has accelerated its stablecoin expansion strategy after acquiring $20 million worth of USDe tokens, marking a notable milestone as its stablecoin ecosystem surpasses a $100 million total value locked . This move signals a determined push by MEXC to strengthen its position in the increasingly competitive stablecoin market and further diversify its crypto offerings. The $20 million USDe acquisition represents a calculated effort to bolster liquidity and adoption of stablecoins pegged to the US dollar, which have become vital in reducing volatility within the cryptocurrency sector. Stablecoins like USDe offer users a more reliable medium of exchange and store of value compared to traditional cryptocurrencies, which can experience dramatic price swings. MEXC's increasing focus on stablecoins aligns with global trends where institutional and retail investors seek safer avenues for digital asset investment amid regulatory uncertainties and market fluctuations. Beyond the recent purchase of USDe, MEXC's stablecoin portfolio has seen sustained growth, pushing the platform's total stablecoin value locked to exceed $100 million. This figure reflects the combined assets users have committed within MEXC's stablecoin ecosystem, encompassing liquidity pools, staking, and yield farming products. The growing TVL not only underscores user confidence but also enhances the exchange's capacity to support high-volume trading and DeFi activities anchored by stablecoins. ADVERTISEMENT MEXC's engagement in the stablecoin space builds upon its earlier strategic $16 million investment in Ethena, a notable innovator specialising in stablecoin technology and ecosystem development. Ethena's platform focuses on creating programmable, algorithmic stablecoins that aim to maintain price stability through decentralised governance and dynamic supply adjustments. By backing Ethena, MEXC has positioned itself at the forefront of stablecoin innovation, tapping into emerging technologies that could redefine how digital currencies achieve and sustain their peg. The decision to invest heavily in USDe and Ethena also comes amid rising competition among exchanges and financial platforms seeking to capture market share in stablecoin issuance and trading. Major players like Tether , USD Coin , and Binance USD dominate market capitalization, but newer tokens like USDe have gained traction through enhanced transparency, regulatory compliance, and blockchain interoperability. MEXC's adoption of USDe highlights its intent to diversify beyond the dominant incumbents, offering users alternatives that may align better with evolving regulatory frameworks. Industry experts note that the integration of stablecoins into broader financial systems remains a critical driver for crypto adoption. Stablecoins facilitate cross-border payments, remittances, and decentralised finance applications with reduced friction and costs compared to fiat-based mechanisms. MEXC's strategy of expanding its stablecoin offerings enhances its utility as a hub for such financial activities, making it attractive to a wider range of traders and developers. Regulatory clarity surrounding stablecoins has varied globally, with some jurisdictions imposing stringent requirements while others promote innovation-friendly policies. MEXC, headquartered in Seychelles with a growing international presence, has adapted to this shifting landscape by aligning its stablecoin partnerships with platforms like Ethena that emphasise compliance and governance transparency. This approach aims to pre-empt potential regulatory hurdles and establish MEXC as a responsible player in the digital currency ecosystem. The growth in MEXC's TVL also corresponds with increased user engagement in decentralised finance products facilitated by stablecoins. Yield farming and staking opportunities offered on the platform encourage users to lock their assets in exchange for rewards, helping to boost liquidity and network activity. These products often depend on stablecoins to mitigate risk, offering participants a balance between yield generation and capital preservation. ADVERTISEMENT Market analysts observe that the stablecoin sector is poised for further expansion as demand for digital dollar substitutes rises. Factors such as increasing institutional interest, the rise of central bank digital currencies , and the ongoing integration of blockchain technology into mainstream finance all contribute to stablecoins becoming indispensable in the crypto landscape. MEXC's proactive steps to expand its stablecoin infrastructure may provide a competitive advantage as these trends accelerate. The $100 million TVL milestone not only demonstrates MEXC's capability to attract substantial user funds but also reflects confidence in the exchange's technical infrastructure and security protocols. Ensuring safe custody and seamless transactions is crucial for stablecoin platforms, given the heightened regulatory scrutiny and user concerns over fraud and hacking incidents in the sector. MEXC's roadmap indicates continued efforts to broaden its stablecoin offerings, with potential plans to incorporate additional tokens and enhance cross-chain compatibility. This would enable users to transact stablecoins across multiple blockchain networks, facilitating greater interoperability and expanding MEXC's reach within the decentralised finance space. The exchange also plans to deepen its collaboration with DeFi projects and developers, positioning stablecoins as a foundational component for innovative financial products. This aligns with broader industry movements where stablecoins serve as the backbone for lending protocols, decentralised exchanges, and payment solutions.
Yahoo
06-06-2025
- Business
- Yahoo
Big hot tech stock hits $115 on day two of NYSE debut
Big hot tech stock hits $115 on day two of NYSE debut originally appeared on TheStreet. Circle Internet Group Inc. (NYSE: CRCL), the crypto company behind the USDC stablecoin, continued its meteoric rise on June 6. At press time, CRCL is priced at $115, up by over 25% in the last 24 hours, briefly touching $100. The price surge followed a spectacular IPO debut the day before, when shares opened at $69, 124.19% above the IPO price of $31. Fueled by strong demand from institutional investors, Circle raised $1.1 billion through its public offering and increased the number of shares sold from 24 million to 34 million shares—a significant increase for investors. Its valuation on a fully diluted basis stands at more than $22 billion at press time. The initial public offering was underwritten by a group of financial giants, including J.P. Morgan, Citigroup, and Goldman Sachs. Barclays, Deutsche Bank, Société Générale, and other financial institutions also participated. Interest from major players — such as BlackRock, which is poised to acquire 10% of the offering — further fueled enthusiasm. Furthermore, on June 5, ARK Invest purchased 4.48 million shares of CRCL for $373 million at the closing price of $83.23. The firm also cut its holdings in other crypto stocks such as Coinbase (Nasdaq: COIN), Robinhood (Nasdaq: HOOD), etc. Circle's rapid rise coincides with a renewed moment of interest in stablecoins as Big Tech considers integrations. Stablecoins are cryptocurrencies whose value is tied to another asset, such as a fiat currency or gold, in order to maintain a stable price. Circle's stablecoin USD Coin (USDC), for instance, is pegged to the US dollar. Big hot tech stock hits $115 on day two of NYSE debut first appeared on TheStreet on Jun 6, 2025 This story was originally reported by TheStreet on Jun 6, 2025, where it first appeared.
Yahoo
06-06-2025
- Business
- Yahoo
Circle's CEO is thrilled over SEC oversight
In today's CEO Daily: Diane Brady on Circle's IPO pop. The big story: Elon Musk and Donald Trump are fighting. The markets: Up in U.S. before jobs report. Analyst notes from UBS, BofA, and Goldman Sachs. Plus: All the news and watercooler chat from Fortune. Good morning. Yesterday was a very good day for Jeremy Allaire, as shares in his crypto firm Circle (CRCL) began trading on the New York Stock Exchange, closing at 168% above its $31 IPO price (the company upsized the IPO the night before its debut). 'As we went through our IPO Road Show and ultimately priced the deal, we saw an incredible amount of interest and enthusiasm from an incredibly broad and deep array of investors,' Allaire told me in a phone conversation on Thursday. It's been a long journey for Allaire, who tried to take the stablecoin issuer public through a SPAC merger in 2021 but didn't get approval from the SEC, which had then questioned how to classify its USD Coin, a form of cryptocurrency backed by the U.S. dollar, and the company itself. Fast forward and it's a new day. The GENIUS Act just passed the Senate with bipartisan support and looks likely to become law, providing a federal framework for regulating stablecoins. (The House introduced its own stablecoin bill.) Said Allaire: 'No matter what your political affiliation is, sound regulation makes sense, especially when a technology like this is on the cusp of such widespread adoption.' For Allaire, though, nothing matches the thrill of being under the watch of the U.S. Securities and Exchange Commission. 'As a financial platform and financial infrastructure company that people are going to build on, where we're actually issuing a new kind of money, being public really matters,' he said. 'Becoming an SEC-regulated and supervised company just strengthens those attributes at a time where stable coin is becoming a global mainstream phenomenon.' At the end of a long day, Allaire told me he's grateful to his family, his team, developers that build applications on this technology, and the broad and deep array of investors that helped give Circle a successful debut. But, he says, he doesn't want to get too caught up in the stock price. 'What's important is that we're building a great company. We've got investors that want to be with us. We've got a lot to do.' More news CEO Daily via Diane Brady at This story was originally featured on Errore nel recupero dei dati Effettua l'accesso per consultare il tuo portafoglio Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati
