Exporting the Dollar Through Code: The GENIUS Act and the Rise of Corporate-Issued Stablecoins

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​​The GENIUS Act Plants the Roots for U.S. Stablecoins to Grow 

On July 18, 2025, the United States enacted federal legislation establishing a regulatory framework for cryptocurrency, as President Trump signed the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act into law, integrating digital assets into the nation’s financial architecture. Key features that influence stablecoin adoption include the following:

1.     Capital and Liquidity Requirements: 

The Act required that all U.S.-issued payment stablecoins be pegged 1:1 to the dollar or short-term US treasury. Requiring stablecoins to be backed by USD or short-term Treasuries has created a new source of financing for government debt, lowering interest costs.  Most importantly, global usage of USD-pegged stablecoins reinforced dollar dominance, creating geopolitical and strategic incentive. In some countries, stablecoin transaction volumes are as large as, or larger than, transactions in the local currency within the crypto ecosystem. For example, stablecoin activity in Latin America & the Caribbean reached 7.7% of GDP, and in Africa & the Middle East it hit 6.7% of GDP, indicating very significant usage relative to local economic size. This reinforces dollar dominance by deepening global financial dependence on the U.S. dollar and weakening the monetary sovereignty of other countries.

2.     Non-traditional banks may issue stablecoins: 

The Act created a regulatory framework that permits approved nonbank entities to become "permitted payment stablecoin issuers" (PPSIs). The decision to allow non-traditional banks to issue stablecoins rests on the fact that U.S. dollar-backed stablecoins issued by private companies can scale quickly across existing platforms. These include payment apps, e-commerce systems, social networks, cloud services, and mobile devices that already reach billions of users worldwide. By contrast, a centrally backed digital currency (CBDC), a Federal Reserve–issued CBDC, faces structural limitations that constrain adoption and innovation, making it a far narrower channel for exporting dollar usage abroad. This stance was reinforced in February 2025, when Senator Mike Lee introduced a bill seeking a permanent ban on a U.S. central bank digital currency.

Big Tech and other commercial enterprises now have a clear pathway to enter the stablecoin market by acquiring nonbank issuers, leveraging their infrastructure and capital to build crypto-enabled financial ecosystems. Big Tech companies such as Alphabet (Google), Amazon, Apple, Meta (Facebook), Walmart, and X are actively exploring plans to issue their own stablecoins. While the “Stablecoin Certification Review Committee,” chaired by Treasury Secretary Bessent, has the authority to approve acquisitions by publicly traded Big Tech companies and other commercial enterprises, the Act offers a pathway for big tech companies and Fintech firms to issue their own stablecoins.

Corporation Sees Stablecoins as a Catalyst for Savings and AI-Powered Purchases

1.     Cost and Speed Advantage

Traditional cross-border payments, whether via SWIFT, wire transfers, or remittance services, often cost 6% once fees, poor exchange rates, and intermediary charges are added. Stablecoins, by contrast, typically cost under 1% to send, with networks like Solana charging fractions of a cent and Tron processing global transfers for under $1.

Speed is another major edge: stablecoins settle within seconds, 24/7, with finality and real-time visibility. Legacy fiat systems, wires, ACH, and even “real-time” payment networks, on the other hand, remain limited by banking hours, cutoff times, and regional barriers, making them slower and less interoperable for global transactions.

For example, multinational retail companies like Amazon are exposed to foreign exchange risk and currency fluctuations that can cost billions when payments are made via traditional cross-border systems. By adopting dollar-backed stablecoins, firms can convert local currencies into a stable digital asset and repatriate funds to the U.S. almost instantly. This reduces reliance on traditional banking channels, mitigates currency volatility, and improves capital efficiency by allowing cross-border transfers that settle in seconds rather than days. 

However, bypassing traditional cross-border payments by adopting stablecoin poses a significant challenge to traditional banking, as it could divert customer deposits away from banks toward digital alternatives. A U.S. Treasury report from April estimated that widespread stablecoin use could cause up to $6.6 trillion in bank deposit outflows, potentially undermining banks’ funding base, limiting credit creation, and threatening broader financial stability.

2.     Currency AI Can Read to Operate Autonomous Purchases 

Stablecoins are inherently programmable, making it possible to embed conditional logic, automate transactions, and streamline backend processes. A programmable, stable digital currency could revolutionize e-commerce, enabling AI-driven purchases and seamlessly integrated financial services within their platforms. Such Agent Payment Protocol or AP2 transacted through stablecoins and blockchain-based settlement rails, signaling a future where digital assets could quietly power the daily transactions of AI agents. Active stablecoin wallets have surged from 19.6 million to over 30 million in one year — a 53% growth in adoption.

Alphabet has already introduced the Agent Payments Protocol, or AP2, which allows AI agents to initiate payments on their own. Google has unveiled its Agent Payments Protocol, bringing AI and stablecoin payments together in a move that could reshape how autonomous agents handle money.

What’s Next?

As the GENIUS Act approaches full implementation in 2027, both banks and nonbank firms are preparing for a reshaped financial ecosystem. Banks are weighing three strategies: issuing their own stablecoins or partnering with established players, innovating in digital payments using their trusted customer base, or lobbying for stricter rules on nonbank competitors. At the same time, tech platforms and nonbank issuers are moving quickly to position themselves under the Act’s forthcoming regulatory structure. 

To participate in this new payment paradigm of payment, firms must evaluate whether their corporate structures meet OCC licensing standards, build reserve operations that satisfy 1:1 backing requirements, and prepare for enhanced oversight, audits, and compliance obligations. They will also need strong vendor-risk frameworks for wallets, custodians, and processors, and longer product-development timelines to account for regulatory engagement. As legislative details continue to develop, any institution involved in digital assets or payments should begin mapping its existing operations to the emerging federal framework to stay competitive.

*The views expressed in this article do not represent the views of Santa Clara University.