The recent US GENIUS Act stands as a landmark law poised to significantly boost the adoption of stablecoins both within the United States and globally.
However, beyond merely increasing demand for dollar-backed stablecoins, this legislation imposes a comprehensive ban on yield-bearing stablecoins, prohibiting holders from earning interest on their digital dollar assets. This restriction is expected to prompt a major reallocation of capital.
According to insights from Will Beeson, former Standard Chartered executive and current CEO of Uniform Labs, this ban will likely channel trillions of dollars into the tokenization of real-world assets (RWAs). Institutional investors are actively searching for compliant alternatives to earn yield while retaining liquidity.
Beeson emphasizes that institutions will not allow their stablecoin holdings to remain idle and depreciate. Instead, they will demand access to infrastructure that enables risk-free, programmatic yield with the flexibility to move funds efficiently between cash and high-quality assets.
Supporting this perspective, Solomon Tesfaye of Aptos Labs also foresees the GENIUS Act driving growth in asset tokenization parallel to stablecoin markets.
To facilitate this evolving landscape, Uniform Labs is developing Multiliquid, an institutional liquidity platform that provides real-time, programmable conversion between various tokenized assets, including US Treasurys, money market funds, and stablecoins. This open-architecture network allows compliant issuers to integrate seamlessly without the need for commercial agreements.
Although partners remain undisclosed, Uniform Labs is collaborating with prominent financial institutions, fintech firms, and stablecoin issuers ahead of a planned production launch later this year.
The tokenization market, currently valued near $26 billion, predominantly focuses on private credit and government bonds but is expected to broaden as tokenized assets expand to corporate bonds, commodities, equities, real estate, and private equity.
Sandra Waliczek of the World Economic Forum highlights tokenization’s ability to democratize access to traditionally exclusive asset classes by enabling fractional ownership and smaller investment units.
This shift positions tokenization as the next significant phase in digital assets, complementing the regulatory clarity offered by the GENIUS Act to stablecoins.