U.S. banks move into stablecoins as GENIUS Act reshapes the payments landscape

The GENIUS Act, signed in July 2025 under President Donald Trump, is beginning to show tangible effects. With new operational rules taking shape and a proposal released on April 10 by the Federal Deposit Insurance Corporation, major U.S. banks are preparing to enter the stablecoin market, currently valued at roughly $323 billion.

The emerging framework allows banks to issue dollar-pegged digital tokens integrated into traditional payment infrastructure. According to reporting cited by Forbes, the move represents one of the most significant structural changes to the U.S. payments system in decades.

Banks would now compete directly with dominant stablecoins such as Tether and USD Coin, issuing branded versions backed by regulated reserves and existing customer bases. Research from 21Shares estimates the stablecoin market could surpass $1 trillion by the end of 2026.

Policy tensions remain. According to The New York Times, banks and crypto firms are disputing whether stablecoins should be allowed to pay interest to holders — a feature banks fear could cannibalize traditional deposits. The current GENIUS Act framework restricts interest-bearing stablecoins, but the debate is ongoing.

Meanwhile, market activity continues to grow. Daily transaction volume through stablecoins has reached levels comparable to, and in some cases exceeding, major payment networks such as Visa.

The question is no longer whether banks will enter the stablecoin market.
It’s how fast they will move.