Stablecoins

The possible approval of the GENIUS Act in the US represents a turning point for the stablecoin market. According to David Sacks, this regulation would bring legal security to a market that already moves more than $200 billion, unlocking massive demand for US Treasury bonds.
This is relevant because, in practice, the more stablecoins issued backed by Treasurys, the greater the connection between the crypto market and the traditional US economy, strengthening the dollar digitally and expanding the liquidity of the global financial system.

Trump adviser David Sacks says the GENIUS Act will pass the Senate with bipartisan support, potentially unlocking trillions in demand for US Treasurys.
Trump’s crypto czar David Sacks says stablecoin bill is ‘going to pass’
David Sacks, US President Donald Trump’s top adviser on crypto and artificial intelligence, said the administration expects the stablecoin bill to clear the Senate with bipartisan backing.
“We have every expectation now that it’s going to pass,” Sacks to, following a key procedural vote that saw 15 Democrats join Republicans to clear the filibuster threshold.

The Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act is the most advanced federal effort yet to establish a legal framework for dollar-pegged digital assets.
Sacks said the bill could trigger “trillions of dollars” in demand for US Treasurys by unlocking stablecoin growth under clear rules.

“We already have over $200 billion in stablecoins — it’s just unregulated,” he added. “If we provide legal clarity, we create enormous demand for Treasurys practically overnight.”

#GENIUSAct #Stablecoins

Something unusual is happening beneath the surface of the Federal Reserve's quantitative tightening (QT) efforts.
Officially, the Fed has reduced its balance sheet by over $2.2 trillion since early 2022, trimming down from the expansionary peak reached during the pandemic response. But a closer look reveals a twist: while the total balance sheet has shrunk, the proportion of long-dated Treasury securities—specifically 10+ year bonds—has increased.
This wouldn’t matter if long-term debt didn’t serve a crucial function. In the U.S. economy, 10-year Treasury yields set the benchmark for mortgages, infrastructure loans, and large-scale capital planning. Lowering those yields can spur economic activity. But there’s a catch: demand for these securities has been weakening, especially from traditional foreign buyers like China, which has been gradually reducing its holdings. Meanwhile, domestic institutions aren't lining up eagerly either. Someone has to buy the paper.
If foreign central banks are stepping back and QT officially rules out direct purchases by the Fed, who’s left? Turns out, the Fed itself may still be intervening, quietly. The longer end of its portfolio has not been trimmed proportionally. Some analysts suggest this is no accident. It's a balancing act: maintain the appearance of balance sheet discipline while ensuring that long-term borrowing costs don't spiral out of control.
Enter stablecoins.
At first glance, the connection seems distant. Stablecoins are digital assets pegged to the dollar and backed by short-term U.S. government securities. But what they do, in effect, is vacuum up massive amounts of short-duration Treasuries. That frees up institutional investors to rotate into longer-dated bonds. Indirectly, stablecoin growth can alleviate pressure on the long end of the yield curve.
And this is not just theoretical. Legislation like the GENIUS Act and the STABLE Act, currently circulating through Congress, aims to formalize stablecoin issuance, reinforce dollar-backing rules, and make these instruments integral to the financial system. The political narrative is being shaped, too. Figures close to Donald Trump, such as David Sacks, have publicly stated that with proper regulatory clarity, stablecoins could unlock trillions in demand for Treasuries overnight.
So while the Federal Reserve appears to be reducing its footprint, its quiet support of long-term bonds, alongside a budding political alliance around stablecoin expansion, tells a more nuanced story. The U.S. doesn’t just need to manage its debt, but it needs to find new ways to distribute it. And if traditional buyers are less enthusiastic, new digital mechanisms may be the next vessel for absorbing that load.
This isn’t monetary policy as it used to be. It's not a conspiracy, but it is choreography; a carefully managed dance between optics, balance sheet math, and structural necessity.
We've seen echoes of this kind of workaround before. In the aftermath of the 2008 financial crisis, quantitative easing didn't just mean direct asset purchases—it meant a sprawling web of facilities, rehypothecation channels, and balance sheet disguises that created liquidity far beyond what was seen on the surface. What we’re witnessing today with stablecoins might be a digital-era sequel: a new structure engineered to achieve the same effect as QE, without naming it as such.

#FederalReserve #Stablecoins
$USDC

Traditional finance is diving deeper into crypto than ever before. French mega-bank Société Générale, with over $40 billion in assets, is preparing to launch a new US dollar–backed stablecoin. The token will debut on the Ethereum blockchain, with plans to expand to Solana in the near future.

🧱 Step One: Ethereum. Step Two: Solana
The initiative is led by SG Forge, the bank’s crypto-focused division, which is responsible for accelerating digital transformation. The new USD stablecoin will be exclusively for institutional use — meaning banks, funds, and corporations, not retail users.
📍 No retail access in the initial rollout

📍 The goal: establish dominance in the EU’s dollar stablecoin market

🏛️ EU Crypto Regulations Attract Banks
The EU’s new MiCA (Markets in Crypto-Assets) framework is creating a more structured and legally secure environment for traditional institutions. This is opening the door for players like Société Générale to enter a market previously ruled by crypto-native firms like Tether, Circle, and Ripple.
This isn’t Société Générale’s first crypto move — the bank launched a euro-backed stablecoin in 2023.

🌍 Stablecoins Surge in Popularity – Mastercard, Meta, and Visa Join In
The global interest in stablecoins has surged to record highs, and major financial and tech players are scrambling to capture market share:
🔹 Mastercard launched a stablecoin-powered payment card with MoonPay

🔹 Meta is reportedly planning a return to crypto via a stablecoin strategy

🔹 Visa and Stripe continue to deepen their blockchain integrations

🔗 Ethereum and Solana: The New Homes for Institutional Tokens
Ethereum and Solana are becoming go-to platforms for stablecoins issued by institutions:
🔹 WLFI, a Trump-backed project, is launching a $1 stablecoin on Ethereum

🔹 USDC and USDT remain anchored across both Ethereum and Solana

🔹 Ripple, Circle, and Tether are enhancing compliance ahead of the upcoming GENIUS Act in the U.S.

📌 Summary: Stablecoins Are No Longer Just for Crypto Fans — Banks Want In Too
Société Générale’s move into USD stablecoins shows that the institutional world is taking digital assets seriously. With clearer regulations, expanding adoption, and maturing technology, it’s clear that the merger of traditional finance and crypto isn’t a question of “if” — but “how fast.”

#Stablecoins , #Ethereum , #solana , #DigitalAssets , #DigitalAssets

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