Stablecoins are transitioning from experimental phases within the crypto world to integral components of pre-existing banking and payment systems.
Payment giants like PayPal, Mastercard, and Visa are actively introducing stablecoin solutions or enhancing their systems to accommodate this new digital currency format.
Notably, a coalition of prominent banks including Goldman Sachs, Deutsche Bank, Bank of America, BNP Paribas, and Citi have come together to explore the establishment of a public blockchain-based digital currency backed by reserves.
The acceleration of these developments aligns with the recent passing of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act on July 18, which was signed into law by President Donald Trump. Diverse organizations are opting for various models ranging from fully backed retail stablecoins to tokenized deposits and tokens for wholesale settlements.
GENIUS Sparks US Stablecoin Progress
Prior to the GENIUS Act, the predominant approach for US stablecoins was anchored in New York’s trust charter regulations. PayPal, for instance, adopted this method in August 2023 to launch PayPal USD (PYUSD) via Paxos.
Moreover, Fiserv, a financial services provider, announced its upcoming FIUSD stablecoin in June 2025, aiming for seamless integration into banking systems before year-end. This initiative now includes a partnership with the Bank of North Dakota for a pilot project involving their “Roughrider Coin”.
Global Market Dynamics
Stablecoins in Europe remain limited, with most liquidity concentrated in US dollar-pegged tokens like USDC and USDT. Jürgen Schaaf from the European Central Bank voiced concerns about the potential erosion of monetary sovereignty in Europe if strategic actions are not undertaken.
Stablecoin regulations in Europe and Asia are developing along varying regulatory landscapes, with notable efforts from Japanese banks aiming to launch a yen-backed stablecoin by the end of their fiscal year.
Adapting to this rapidly changing regulatory environment and the growth of stablecoins, entities in both traditional finance and tech sectors are adjusting their strategies.
