Stablecoins are reaching a new level. This week, the US Congress is set to consider the GENIUS Act — it directly relates to the regulation of stablecoins. Investors and analysts are closely monitoring the situation, especially against the backdrop of the recently started 'crypto week'.
At Bank of America, they believe that if the document is accepted, stablecoins will be able to integrate more deeply into the traditional financial system. This means that the very principles of money movement will begin to change. And not everyone will benefit from this, only four directions.
Ethereum is the foundation for the future of stablecoins
Most stablecoins do not exist on their own. They operate on underlying blockchains like #Ethereum .
In a recent report by Bank of America titled 'On Chain', Ethereum is referred to as a key link in the future of the entire industry. According to analysts, this network will become the infrastructural foundation for both private and institutional stablecoins. It is called the 'gateway' for investors.
Currently, over half of all stablecoins in circulation are hosted on Ethereum. The support for smart contracts makes the network convenient for large transactions and digital dollars with flexible logic. It is no surprise that even payment giants like Stripe are building their solutions on Ethereum.
The US Treasury believes that in five years, the stablecoin market could grow to $2 trillion — and Ethereum will likely be the main driver of this growth.
Large banks are also in the game
Traditional financial structures are no longer sitting on the sidelines.
In June, JPMorgan launched its own tokenized deposit — JPMD. It operates on a blockchain based on Ethereum, developed jointly with Coinbase. And BNY Mellon is now partnering with #Ripple , acting as a reserve custodian for the new dollar stablecoin. This is a direct signal that the old banking system is starting to embrace crypto infrastructure.
Payment giants are already ahead
Companies like Visa, Mastercard, and PayPal started preparing for the transition long before everyone else.
Visa conducted its first transaction with the stablecoin $USDC back in 2020. Mastercard is now working with Circle to enable stablecoin payments for clients. And PayPal even released its own PYUSD in 2023. All of this is no longer theory, but working strategies in real payment systems.
Shopify connects to USDC
Crypto is also entering the e-commerce market.
Shopify has partnered with Circle to add payment in USDC — now sellers can accept cryptocurrency from customers around the world. Bank of America believes that cross-border transfers are one of the main applications for stablecoins, and Shopify was one of the first to join the game.
The path is long, but the start has already been given
According to Ebrahim Poonawala, head of banking sector analytics at Bank of America, it may take three to five years for the full implementation of infrastructure for stablecoins. But considering the upcoming regulation and the fact that major players are already in the game, everything could move much faster than expected.
