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GENIUS Act to spark wave of ‘killer apps’ and new payment services: Sygnum

2025-07-27 13:06:50

Main Idea

The GENIUS Act is expected to foster innovation in stablecoin regulation and payment services, aligning the U.S. with global standards and enabling real-world applications.

Key Points

1. The GENIUS Act creates a clear separation between interest-bearing stablecoins and those used for payments, aligning the U.S. framework with the EU's MiCA regulation.

2. Major companies like Mastercard and PayPal are paving the way for compliant stablecoin use, with stablecoin yields currently at 4–5% in U.S. Treasury-backed products.

3. Polygon Labs reports a 67% increase in micropayment stablecoin volume from February to June, reaching $110 million, driven by cross-border transfers and commerce.

4. Small payment volumes ($100-$1,000) on Polygon grew 190% to over $563 million from February to June, with expectations of further acceleration.

5. The GENIUS Act, passed with bipartisan support, establishes the first federal framework for stablecoins in the U.S.

Description

Sygnum’s Fabian Dori says the GENIUS Act brings the U.S. closer to global consensus on stablecoin regulation, paving the way for real-world use cases.

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