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GENIUS ban won’t stop institutions from seeking stablecoin yield — ex-Standard Chartered exec

2025-08-11 20:53:06

Main Idea

The US GENIUS Act may boost stablecoin adoption but its ban on yield-bearing stablecoins could drive institutions to seek compliant yield alternatives, potentially accelerating tokenization and programmatic access to risk-free yield.

Key Points

1. The GENIUS Act bans yield-bearing stablecoins, pushing institutions to find compliant ways to earn yield while maintaining liquidity.

2. Uniform Labs is developing Multiliquid, a platform for real-time conversion between cash and high-quality assets, to meet institutional demand for programmatic yield access.

3. Tokenization, particularly of assets like private credit and government bonds, is expected to grow as a result of the GENIUS Act's restrictions on stablecoin yields.

4. The tokenization market, currently valued at nearly $26 billion, is poised to expand beyond its current focus areas due to regulatory changes like the GENIUS Act.

5. Industry experts, including those from Aptos Labs and Uniform Labs, believe the GENIUS Act will benefit both stablecoins and tokenization by legitimizing digital assets and fostering infrastructure development.

Description

The US GENIUS Act may boost stablecoin adoption, but its ban on yield-bearing stablecoins could drive trillions into tokenized real-world assets.

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