The recently passed GENIUS Act marks a fundamental shift in the U.S. stablecoin industry, transitioning issuers from yield-focused business models to utility-centric platforms.
According to Sygnum's CIO Fabian Dori, the Act deliberately separates interest-bearing stablecoins from those intended for payments. This effectively prohibits issuers from promising yield or returns, forcing innovation toward real-world payment use cases. Sygnum forecasts this will give rise to “killer apps” powered by compliant stablecoins integrated into merchant checkout, payroll systems, cross-border remittances, and programmable finance.
Under the GENIUS Act framework, Permitted Payment Stablecoin Issuers (PPSIs) must back tokens 1:1 with high-quality liquid assets, perform monthly attestation, and maintain full transparency. The law also restricts issuance to licensed banks, fintechs, or approved non-banks under strict oversight by OCC or member state regulators.
This shift reflects a broader change: stablecoins are no longer tools for yield-seeking investors but vehicles for fast, low-cost payments and settlement systems. Stakeholders like Mastercard, PayPal, Amazon, and Walmart are already piloting integrations. Regulators expect widespread adoption—but warn about fragmentation, legacy banking risks, and concentration of power if tech giants enter finance unchecked.
In effect, the GENIUS Act transforms stablecoins from speculative assets into trusted payments infrastructure—rigorously regulated, dollar-backed, and ready for mainstream utility.