The US Senate has passed the Genius Act, creating new opportunities for financial institutions to issue stablecoins. This decision may radically change the landscape of the stablecoin market.
What is the Genius Act and its Implications
The Genius Act has been approved by the US Senate, marking a significant step towards stablecoin regulation. Following its passage, major financial institutions are expected to roll out their own stablecoins. According to Guillaume Poncin, CTO of Alchemy, banks will be able to operate their own blockchain systems. This move could enable banks to generate revenue, maintain control over customer relationships, and improve transaction efficiency.
Expected Market Changes for Stablecoins
The issuance of stablecoins by banks may significantly alter the current market dynamics. Poncin points out that significant players such as Circle and Tether will continue to hold their stakes in cryptocurrency transfers. However, banks will be able to offer unique solutions, such as instant settlements and programmable money, making them more attractive to corporate clients and regulated institutions.
Alchemy’s Role in the New Financial Ecosystem
Alchemy serves as the infrastructure layer that aids financial institutions in integrating blockchain technologies. Poncin emphasized that the company provides APIs and developer tools, simplifying the creation of new products in the stablecoin domain. Following the passage of the Genius Act, Alchemy has seen a sharp increase in interest from the largest banks, anticipating their swift transition to new technologies.
The passage of the Genius Act opens new horizons for financial institutions, allowing them to adopt blockchain technology and issue their stablecoins. This could lead to a transformation in market structure and enhance services for clients.
