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The GENIUS Act is poised to change the stablecoin landscape by steering issuers away from yield-based models and toward payment-focused use cases, according to Sygnum chief investment officer Fabian Dori.<\/p>\n
\u201cThe GENIUS Act was recently amended to create a clear separation between interest\/yield-bearing stablecoins and those used for payments,\u201d Dori told Cointelegraph. He said this brings the US framework closer to the EU\u2019s Markets in Crypto-Assets (MiCA)<\/a> regulation, laying the foundation for \u201cglobal consensus.\u201d<\/p>\n Dori added that the real impact of the GENIUS Act goes beyond regulation. \u201cBy providing long-sought-after clarity, it gives confidence to organizations and issuers to develop original, innovative \u2018killer apps\u2019 that don\u2019t just serve their customers\u2019 current needs, but create demand for entirely new services, including payments,\u201d he said.<\/p>\n That confidence appears to be translating into growing demand. Giants like Mastercard and PayPal have laid the groundwork for compliant stablecoin use, and companies such as Amazon and Walmart are exploring applications in payroll and cross-border settlements.<\/p>\n He noted that tokenized money market funds<\/a> are the better fit for investors chasing returns. These funds, which offer a stable value and daily liquidity, are currently yielding 4\u20135% in US Treasury-backed products, without blurring the lines between investment and utility.<\/p>\n Related: <\/strong><\/em>Nigeria opens doors to stablecoin firms under regulatory oversight<\/strong><\/em><\/a><\/p>\n With interest-bearing stablecoins now restricted, issuers are expected to lean into features like real-time settlement, low transaction costs and programmable capabilities that integrate into payment and trading systems, Dori said.<\/p>\n \u201cUtility beats yield now,\u201d Jason Lau, chief innovation officer at OKX, said. He argued that in an increasingly competitive space, issuers will continue to pursue innovative models to drive adoption and new use cases.<\/p>\n Lau also said that the benefits of stablecoin settlement and cross-border efficiency are poised to drive adoption in real-world commerce, with interest from payment giants like PayPal and Stripe signaling just the beginning.<\/p>\n Meanwhile, Aishwary Gupta, global head of payment and fintech at Polygon Labs, said the shift toward utility was already \u201cunderway\u201d even before the passage of GENIUS Act.<\/p>\n Gupta said Polygon has observed significant growth in payment-focused stablecoin usage, with their micropayment volume rising 67% from February to June, reaching $110 million. He said:<\/p>\n \u201cRegulatory compliance helps, but more important is how it meets real market demand. Payment use cases offer immediate utility and solve actual problems for users, like in cross-border transfers and everyday commerce.\u201d<\/p><\/blockquote>\n Related: <\/strong><\/em>GENIUS\u2019 ban on stablecoin yield will drive demand for Ethereum DeFi \u2014 Analysts<\/strong><\/em><\/a><\/p>\n Despite the shift, retail adoption remains a critical factor. \u201cIt\u2019s not fintechs that move the needle, but consumer adoption,\u201d Dori said, emphasizing that user-friendly platforms will determine the pace of stablecoin integration.<\/p>\n Gupta also highlighted the importance of retail adoption, noting that Polygon is prioritizing stablecoin infrastructure that supports real-world applications, from enabling sub-cent transaction fees for micropayments to scaling performance for enterprise-grade deployments capable of handling over 100,000 transactions per second.<\/p>\n The company is also seeing growing momentum in retail and B2B payment integrations. It is currently working with a firm operating 185 million phones across Africa to facilitate cross-border B2B payments.<\/p>\n \u201cWe have enterprises with 7-8 million wallets ready to go live,\u201d he said. \u201cSmall payment volumes ($100-$1,000) on Polygon grew 190% to over $563M from February to June. We expect this trend to accelerate in the coming months.\u201d<\/p>\n Meanwhile, Lau said DeFi protocols might be one of the biggest beneficiaries of this clarity, as stablecoins already anchor a tremendous amount of activity onchain. \u201cWhile there will be some focus on synthetic yields and governance tokens, the opportunity to offer compelling and unique use cases will capture stablecoin demand,\u201d he said.<\/p>\n <\/p>\n Passed this month\u00a0with more than 300 House votes<\/a>, including support from 102 Democrats, the\u00a0Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act<\/a> establishes the first federal framework for stablecoins.<\/p>\nStablecoin issuers pivot to utility<\/h2>\n
Retail adoption remains key<\/h2>\n