New GENIUS Act Could Lead to Smarter Apps and Easier Payments, Sygnum Predicts

The newly proposed GENIUS Act could pave the way for more smart applications and seamless digital payments, according to digital asset bank Sygnum.

GENIUS Act Set to Unlock Smarter Apps and Simpler Payments

Sygnum Chief Investment Officer Fabian Dori says that the GENIUS Act is set to change the stablecoin landscape by moving users away from yield-based models towards real-world payment solutions.

Dori adds that the new GENIUS Act will bring the U.S. closer to a global consensus on stablecoin regulation, paving the way towards real-world use cases.

He explained that the recently amended GENIUS Act creates a clear separation between interest-bearing stablecoins and those used for payments. He said this brings the US framework closer to the EU’s Markets in Crypto-Assets (MiCA) regulation, laying the foundation for “global consensus.”

Dori added that the real impact of the Act is beyond regulation, but the breakthrough lies in the clarity, as it gives confidence to organizations and issuers to develop original, innovative ‘killer apps’ that don’t just serve their customers’ current needs, but create demand for entirely new services, including payments.

Firms like  Mastercard and PayPal have laid the groundwork for legally approved stablecoin use, and companies such as Amazon and Walmart are exploring stablecoin use for payroll and cross-border settlements.

He noted that tokenized money market funds are a better fit for investors chasing returns. These funds offer a stable value and daily liquidity, currently yielding 4–5% in U.S. Treasury-backed products, without compromising regulatory boundaries.

GENIUS Act Sparks Stablecoin Shift to Real-World Use

The new GENIUS Act is pushing stablecoin issuers to focus more on real-world payments, low transaction fees, and smart features that can easily plug into everyday payment and trading systems.

“Utility beats yield now,” said OKX’s Chief Innovation Officer, Jason Lau, noting that issuers are getting more creative to stay ahead.

Polygon Labs’ Aishwary Gupta said the shift toward payments was already happening even before the Act passed. He noted that micropayments using stablecoins on Polygon rose 67% between February and June, reaching $110 million.

Still, retail use is key. Sygnum’s Fabian Dori pointed out that it’s not just FinTech but user adoption that drives growth—meaning simpler, more user-friendly platforms are needed.

Gupta added that Polygon is now working with a firm that manages 185 million phones in Africa to support cross-border B2B payments using stablecoins.

Lau believes DeFi could benefit the most, since stablecoins already play a big role in on-chain activity.

Passed with strong bipartisan support, the GENIUS Act marks the first official U.S. federal framework for stablecoins.