Stablecoin

Bank

Ethena

<p>Just one week after the U.S. passed its first comprehensive crypto legislation, the stablecoin market has added over $4 billion in fresh supply entering circulation. The newly signed GENIUS Act is already changing the sector. By providing a federal framework for fiat-backed stablecoins, it gives banks, asset managers, and fintech startups a regulatory greenlight. It allows for new capital, new players, and a clear path forward for tokenized dollars.</p>
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  <h2 class="in-brief--title" id="in-brief">In brief</h2>
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    <li>Stablecoin supply surged by $4 billion in one week following the GENIUS Act’s passage.</li>
    <li>New entrants like Anchorage, WisdomTree, and Wall Street banks are launching regulated fiat-backed stablecoins.</li>
    <li>The GENIUS Act provides legal clarity and sets strict rules for reserve backing, audits, and licensing.</li>
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<h2 id="h-genius-act">GENIUS Act</h2>
<p>For years, U.S. stablecoin issuers operated in a legal grey zone. The SEC issued warnings. The CFTC disagreed. Congressional action stalled. But with the <a href="https://www.cointribune.com/en/everything-you-should-know-about-the-genius-act/" target="_blank" rel="noopener noreferrer nofollow">GENIUS Act</a> signed into law on July 18, the rules have changed, and the market is reacting fast.</p>
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<p>The law creates specific guardrails for fiat-backed stablecoins: issuers must hold full 1:1 reserves, undergo independent audits, and secure proper licensing. These requirements aim to protect consumers while legitimizing the asset class for institutional use. And institutions are responding.</p> 
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<h2 id="h-anchorage-wisdomtree-and-wall-street-step-in">Anchorage, WisdomTree, and Wall Street step in</h2>
<p>On Tuesday, Anchorage Digital, the only federally chartered crypto bank in the U.S., announced a new stablecoin issuance platform built in partnership with Ethena Labs. Their first product, USDtb, will launch under the GENIUS Act framework.</p>
<p>That same day, Wall Street asset manager WisdomTree launched USDW, a fully dollar-backed stablecoin designed to support dividend-paying tokenized assets. The fund meets all compliance standards laid out in the legislation. Meanwhile, Bank of America, JPMorgan, and Citi have confirmed they’re exploring their own stablecoin initiatives.&nbsp;</p>
<h2 id="h-fiat-backed-dominance-solidifies">Fiat-backed dominance solidifies</h2>
<p>The <a href="https://www.cointribune.com/en/tag/stablecoins-en/" target="_blank" rel="noopener noreferrer nofollow">stablecoin</a> space is still overwhelmingly dominated by fiat-backed tokens, which now account for about 85% of the market. Leading are USDT and USDC, which together command over $227 billion in market cap.</p>
<p>Unlike algorithmic stablecoins, whose reputation took a major hit with the collapse of Terra’s UST, fiat-backed coins are collateralized by real-world assets like dollars and short-term Treasurys. The GENIUS Act specifically focuses on this model.</p>
<p>Crypto-backed tokens like DAI, which use overcollateralized ETH and other assets, continue to play a role, though at $4.3 billion, their footprint is modest in comparison.&nbsp;</p>
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<h2 id="h-a-new-era-for-stablecoins">A new era for stablecoins</h2>
<p>The <a href="https://cointelegraph.com/news/us-crypto-legislation-4b-surge-stablecoin-supply" target="_blank" rel="noopener noreferrer nofollow">$4 billion supply jump</a> is a clear sign of momentum. Stablecoins are moving from crypto-native tools to institutional-grade instruments. They’re starting to power dividend payments, cross-border settlements, and even potential central bank integrations.</p>
<p>Perhaps most importantly, they now have bipartisan legislative support in the U.S. With <a href="https://www.cointribune.com/en/genius-act-the-sec-applauds-a-key-turning-point-for-crypto/" target="_blank" rel="noopener noreferrer nofollow">regulation</a> in place and Wall Street engaged, the stablecoin wars are entering a new phase.</p>
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Stablecoin Supply Rises By $4B Amid New US Legislation

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