GENIUS Act clears path for bank-run blockchains
New US law clears the way for banks to issue stablecoins and run blockchains, promising faster, regulated payments for clients.
The Genius Act brings regulatory clarity, and Alchemy’s CTO Guillaume Poncin expects banks will soon issue stablecoins and operate their own blockchains as standard practice.
Poncin explains that banks stand to gain significant revenue by issuing stablecoins, retaining control over transactions and customer relationships. Clients will benefit from faster, 24/7 settlements with the security and protections associated with traditional banking.
Meanwhile, established stablecoin issuers such as Circle and Tether will continue to focus on crypto-native applications and international transfers, allowing banks to concentrate on institutional and corporate uses.
Banks are expected to utilise a combination of Layer 1 and Layer 2 blockchain networks. While Layer 1 offers maximum security for large transactions, Layer 2 provides scalable, cost-efficient solutions ideal for retail payments.
Ethereum’s Layer 2 ecosystems, secured by the mainnet, present flexible options for banks to meet compliance and performance needs. Interoperability between banks’ blockchains is a priority, with emerging protocols promising trustless and instant cross-chain settlements.
Following regulatory progress, many top banks are now actively pursuing stablecoin issuance, signalling rapid adoption in the near future.
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