From Congress to Checkout: Stablecoins Gain Real-World Power

June 20, 2025

The stablecoin market reached new heights this week, driven by unprecedented corporate interest, regulatory breakthroughs, and infrastructure expansion. Major retailers are exploring proprietary stablecoins while regulatory frameworks continue to solidify around the world.

Source: Visa Onchain Analytics (quickly becoming one of my favorite resources for this newsletter, be sure to check them out!)

Key Highlights

• GENIUS Act Passes Senate: The U.S. Senate passed the GENIUS Act with a decisive 68-30 vote, marking the first stablecoin legislation approved by either chamber of Congress after years of legislative efforts. This historic regulatory breakthrough provides unprecedented clarity for the stablecoin sector and reinforces US dollar dominance in digital assets, with 97% of stablecoins denominated in dollars.

• Circle Hits Historic Milestone: Circle stock surged 34% to a record high of $200 following the passage of the GENIUS Act, now up an astounding 500% from its initial public offering (IPO). This performance validates institutional confidence in stablecoin infrastructure and establishes Circle as a bellwether for the broader digital asset market.

• Retail Giants Enter Stablecoin Race: WSJ reports that Amazon and Walmart are considering issuing their own stablecoins, signaling a potential shift in the retail payments landscape. This development could bring stablecoin adoption to hundreds of millions of consumers worldwide and fundamentally alter e-commerce payment rails.

Market Performance & Corporate Expansion

Traditional finance and retail are driving the adoption of stablecoins at an unprecedented pace. Beyond Amazon and Walmart's exploration, Shopify has unveiled comprehensive support for stablecoin payments, enabling millions of merchants to accept digital dollar transactions. Chinese e-commerce giant JD announced plans to apply for stablecoin licenses in major global markets, while both Ant International and Ant Group are developing separate stablecoin strategies.

Financial infrastructure providers are embracing the technology with open arms. The DTCC is considering a stablecoin launch to enhance financial market efficiency (hello T+0?), while major banks, including Bank of America, US Bank, and Fifth Third, are
“open” to stablecoins amid the regulatory shift. Circle's USDC has become eligible collateral for US futures trading, further legitimizing stablecoins in traditional financial markets.

Circle continues expanding its global footprint, adding international stablecoin partners while Ramp is advancing AI initiatives that fight payments fraud. Innovation continues at both the issuance and infrastructure levels.

Regulatory Framework & Compliance

As quickly as global regulatory frameworks are evolving, we’re still seeing mixed signals from authorities as US-denominated stables continue to dominate. Hong Kong's new stablecoin law is enhancing the territory's financial appeal to global issuers, with CITIC predicting the legislation will ignite broader tokenization efforts. Bank of Korea's chief has backed the need for a won-based stablecoin while warning of foreign exchange risks, highlighting the delicate balance regulators must strike.

The outgoing Financial Stability Board Chief echoed this sentiment, warning about looming systemic risks associated with stablecoins. These calls indicate a continued regulatory scrutiny of market concentration and potential financial stability implications. 

Despite these concerns, compliance infrastructure is advancing, with the AICPA providing criteria for controls over stablecoins and Tether freezing $12.3M USDT in ongoing anti-crime operations. (Fun fact: they’ve frozen over $126 million since the start of 2025)

Product Innovation & Technical Infrastructure

Innovation continues to flourish, with the Philippines seeing its first regulated stablecoin launch through Coins.ph, and Ripple resuming RLUSD minting with 12 million tokens ahead of critical legislative votes. RLUSD has achieved top-three trading status on Bitstamp, demonstrating strong on-chain adoption. But will consumers prefer using Ripple’s token versus the market leaders?

Cross-chain expansion remains a priority for many, with PayPal expanding PYUSD to Stellar for enhanced cross-border payments and financing capabilities. Bitcoin DeFi project Elastos debuted its BTC-backed stablecoin BTCD, while Aave and CoinDesk launched the CDOR stablecoin, expanding decentralized finance options.

Strategic acquisitions are shaping the landscape, with Tether acquiring a stake in Elemental Altus to deepen its push into gold and hard asset-backed financial infrastructure. Cardano is considering offloading $100M in ADA to jumpstart its lagging DeFi and stablecoin ecosystems, indicating a platform-level commitment to stablecoin adoption. I think Cardano-based projects will struggle to catch up in terms of enterprise adoption with so many other ecosystems further ahead.

Fiserv is launching a stablecoin (FIUSD) for its 3,000+ regional and community bank clients, in partnership with Circle, Paxos, Solana, and soon PayPal. The move brings stablecoin infrastructure to the doorstep of local banks, giving them access to digital dollars, integrated fraud controls, and the potential to issue their own branded stablecoins, all built on existing financial rails.

Infrastructure Partnerships & Cross-Border Solutions

Strategic partnerships and funding rounds are driving development in the sector. SaturnX raised $3 million to build a stablecoin-based payment infrastructure for global remittance markets, while Highnote partnered with BVNK to launch 24/7 real-time stablecoin funding for card programs.

We’re particularly excited about the Highnote news at BVNK because this eliminates bank-hour constraints from card funding. Card programs can now free up capital that normally would have been trapped in legacy financial systems:

Cross-border solutions are gaining traction with Conduit partnering with Braza Group for stablecoin transfers and Trillion Digital joining the Borderless.xyz network to deepen institutional-grade stablecoin liquidity. DWF Labs' Falcon Stable gained Kaia Chain integration, expanding its reach across Asian markets.

Platform integration continues with Matera and Circle collaborating on stablecoin-ready financial platforms, while Beeline is unlocking real estate liquidity through stablecoin funding mechanisms.

This week's developments underscore the transition of stablecoins from experimental technology to essential financial infrastructure. With major retailers exploring proprietary offerings and regulatory frameworks solidifying globally, institutional adoption appears inevitable. 

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