In a historic turning point for the American financial system, major U.S. banks have officially begun moving toward the issuance and settlement of stablecoins. This shift, accelerated by the passage of the GENIUS Act in late 2025, marks the end of the era where stablecoins were seen as "fringe" assets and the beginning of their role as core financial infrastructure.
The Catalyst: The GENIUS Act
For years, banks remained on the sidelines due to a lack of regulatory clarity. The "GENIUS Act" (Guiding Electronic New Innovations for User Safety) changed everything by establishing a clear federal framework. Under these new rules, the FDIC and OCC have opened a path for insured banks to issue "Payment Stablecoins"—digital dollars backed 1:1 by high-quality liquid assets like U.S. Treasuries.
Visa’s Breakthrough: On December 16, 2025, Visa launched its stablecoin settlement framework in the U.S., allowing institutional partners to settle obligations directly in USDC.
FDIC Rulemaking: The FDIC has proposed a formal application process for banks to establish subsidiaries specifically for stablecoin issuance, ensuring these assets are "bank-grade" and secure.
Institutional Integration: Heavyweights like JPMorgan and PayPal are moving key banking functions "on-chain," recognizing that blockchain-based settlement is faster, cheaper, and operates 24/7—unlike traditional wire transfers.
This isn't just about banks making more money; it’s about the modernization of the dollar. As banks adopt stablecoin rails:
Instant Settlements: Domestic and international transfers that used to take days will now happen in minutes.
Lower Fees: By removing traditional intermediaries, the cost of moving money globally is expected to drop significantly.
Programmable Money: Businesses can use "smart contracts" to automate payments, making commerce more efficient.
While 2025 was the year of legislation, 2026 will be the year of implementation. We are moving toward a "hybrid" financial system where your traditional bank account and your digital wallet become one and the same. The "stablecoin side story" is over; it is now the main event in global finance
