GENIUS Act Shifts Stablecoin Focus From Yield to Utility
The GENIUS Act is reshaping stablecoins by separating payment tokens from yield-generating ones, says Sygnum’s Fabian Dori.
The move brings the U.S. closer to Europe’s MiCA and offers clarity for builders to launch real-world applications.
With interest-earning stablecoins restricted, companies like PayPal, Amazon, and Walmart are exploring stablecoins for payroll and payments. For those seeking yield, tokenized treasury funds offer 4–5% returns without regulatory confusion.
OKX’s Jason Lau says “utility beats yield now,” while Polygon’s Aishwary Gupta notes payment volumes on their network jumped 190% to $563M. One African partner is preparing to launch with 185 million phone users.
This pivot has sparked renewed interest in programmable finance. Real-time settlement, low fees, and smart contract integration are becoming the new benchmarks for stablecoin innovation—especially as institutional players look to streamline operations.
At the same time, DeFi platforms may emerge as major winners. Lau notes that clearer rules will push stablecoins deeper into on-chain ecosystems, where they already power lending, payments, and tokenized assets—without relying on risky interest mechanics.
Alexander Zdravkov is a market analyst and crypto journalist with interests in economics, broader financial markets and digital assets. His journey into crypto began more than four years ago, driven by a fascination with the rapid evolution of blockchain technology and the transformative potential of decentralized finance. He began analyzing market cycles and identifying emerging trends before they reach the mainstream. He holds a degree in International Relations - a background that helped shape his broader perspective on global economics, geopolitics, and the interconnected nature of modern financial markets. Whether covering the latest developments in the crypto sector or exploring broader macroeconomic themes, Alexander focuses on giving readers context rather than simply repeating headlines. During his career, he has authored more than 10,000 articles covering cryptocurrencies, traditional finance, and global market developments. His work spans everything from Bitcoin and altcoins to macroeconomic trends influencing risk assets worldwide.
