Catenaa, Thursday, October 09, 2025- The GENIUS Act could trigger a major upheaval in retail banking as technology companies and stablecoin issuers prepare to offer higher yields and faster payments, challenging traditional banks’ low-interest deposits.
Multicoin Capital managing partner Tushar Jain said banks have long exploited retail depositors with minimal returns.
He predicted that tech giants such as Meta, Google, and Apple will leverage massive distribution networks to issue stablecoins offering instant settlement, 24/7 payments, and competitive yields embedded in widely used apps and operating systems.
Stripe CEO Patrick Collison reinforced that depositors deserve market-level returns, highlighting the 0.40% yield on U.S. savings accounts.
Banks are mounting resistance. Trade groups warn that stablecoin yields could trigger massive deposit outflows, estimating a potential $6.6 trillion flight and comparing it to 1980s money market fund trends. Citigroup, JPMorgan, and other institutions are already exploring stablecoin issuance for corporate and institutional clients, illustrating the sector’s mixed approach to the disruption.
The stablecoin market is evolving beyond the Tether-Circle duopoly, which now controls 86% of $298 billion in circulation.
New entrants like Phantom Cash, Hyperliquid, and Ethena are offering yield-sharing and reserve-management innovations, while fintechs and neobanks increasingly internalize reserves and cross-chain swaps, reducing dependency on major issuers.
Industry analysts predict that banks will eventually enter as stablecoin issuers, generating meaningful revenue while adapting to regulatory shifts under the GENIUS Act.
