Regulators Bet Stablecoins Could Reshape $35 Trillion in Global Finance

U.S. policymakers are scrutinizing the potential of stablecoins to reshape global dollar liquidity and financial intermediation, with claims that the technology could facilitate the redistribution of up to $35 trillion in global deposits, including $13 trillion in Eurodollar deposits and $21 trillion in emerging markets and the European Union. According to a report by Certuity, stablecoins could serve as a tool to attract global deposits, support U.S. fiscal deficits, and enhance financial inclusion for international retail participants [4]. This analysis aligns with broader strategic shifts in monetary policy and regulatory oversight, particularly with the passage of the U.S. GENIUS Act, which establishes a formal regulatory framework for stablecoin issuance and reserves [1].

The GENIUS Act, signed into law in July 2025, mandates that U.S. dollar–pegged stablecoins be issued only by authorized entities, including bank subsidiaries, non-bank entities approved by the Office of the Comptroller of the Currency (OCC), or state-licensed non-bank issuers with market capitalization under $10 billion. Each stablecoin must be backed 1:1 by high-quality liquid assets such as U.S. currency, insured bank deposits, short-term Treasuries, repurchase agreements, and money market funds. Issuers are also required to publish monthly reserve disclosures, ensuring transparency and compliance [1].

The Act sets a 18-month implementation period, with a transition deadline of January 18, 2027. State-licensed issuers must transition to federal oversight if their market cap exceeds $10 billion within 360 days. For non-bank entities applying to the OCC, decisions must be made within 120 days of submission, with appeals handled within 90 days. These timelines highlight the urgency for stablecoin businesses to align with regulatory requirements while preparing for a rapidly evolving compliance environment [1].

The potential adoption of stablecoins by global institutions, particularly in emerging markets and offshore banking centers, raises concerns about the future of traditional banking and the stability of local financial systems. In particular, community and regional banks fear that stablecoins could erode their access to low-cost deposits, which are critical for funding local loans. The shift from traditional savings accounts to stablecoin-based deposits could mirror the impact of money-market funds in the 1970s, which drained deposits from banks and reshaped the financial landscape. As stablecoins continue to gain traction, small banks may need to innovate by offering competing products, such as digital deposit receipts that combine the benefits of blockchain with FDIC insurance [3].

Beyond the U.S., stablecoins are also being integrated into corporate and treasury operations. CFOs are increasingly recognizing the operational advantages of stablecoins, including faster cross-border payments, improved liquidity management, and reduced foreign exchange (FX) risk. For example, Fireblocks reported in 2025 that more than 25% of its customer invoices are settling in stablecoins, demonstrating their growing role in international transactions. The technology allows businesses to bypass traditional banking rails, reduce settlement times, and maintain greater visibility into capital flows, providing a strategic advantage for global operations [5].

Regulatory clarity is a key enabler of stablecoin adoption. In the U.S., the GENIUS Act provides a clear framework for stablecoin compliance, while in the EU, the Markets in Crypto-Assets (MiCA) regulation is establishing licensing requirements for issuers and custodians. These developments are encouraging banks and payment providers to prepare for a future where stablecoin flows will be standard in corporate finance. As the regulatory landscape continues to evolve, CFOs are advised to engage with banking partners early, understand policy timelines, and build internal expertise to align treasury operations with the changing financial ecosystem [5].

While stablecoins offer significant opportunities for financial innovation, they also introduce new risks and uncertainties. Unlike traditional bank deposits, stablecoins are not FDIC-insured, and their value is only as strong as the reserves backing them. During moments of market stress, the lack of real-time on-chain transparency can create uncertainty for holders. Moreover, secondary market activity for stablecoins remains largely unregulated, leaving room for volatility and potential regulatory gray areas. Despite these challenges, the growing adoption of stablecoins by businesses, institutions, and governments suggests that they are here to stay, reshaping the future of global finance in ways that remain to be fully understood [4].

Source:

[1] GENIUS Act Is Officially Law — Now What? The Most (https://frblaw.com/genius-act-is-officially-law-now-what-the-most-important-deadlines-stablecoin-businesses-should-know/)

[2] The GENIUS Act in Plain English (for Busy People) (https://dacfp.com/the-genius-act-in-plain-english/)

[3] Your Paycheck in Stablecoins? That's Local Banks' Worst (https://www.bloomberg.com/news/articles/2025-09-08/stablecoins-like-tether-usdc-have-small-banks-businesses-worried)

[4] Dollar Dominance and Stablecoins | Monetary Policy (https://certuity.com/insights/dollar-dominance/)

[5] Stablecoins in Treasury: Why CFOs Should Care in 2025 (https://www.fireblocks.com/blog/stablecoins-treasury-why-cfos-should-care-2025/)