📅 January 15 | United States
While the US Congress wages one of the most delicate regulatory battles of the crypto cycle—who controls the yield of stablecoins and who keeps the money they generate—a new protocol has decided to get ahead of the political outcome. Generic Protocol isn't waiting for legislative clarity or implicit permissions: it has just launched GUSD, a stablecoin that is private by design and challenges the very logic of the stablecoin business.
📖Generic Protocol launched GUSD as what it calls the first natively private stablecoin, integrating a yield routing model completely different from the traditional one. Built on the Morpho lending protocol, GUSD does not issue new dollars nor does it rely on its own bank reserves. Instead, it functions as a meta-stablecoin, aggregating existing assets such as USDC, USDT, and USDS, and deploying them on on-chain markets.
The key difference lies in the destination of the yield. Unlike classic models—where the issuer captures the yield generated by the underlying assets—Generic redirects those returns to the distribution layer, allowing applications, networks, and end users to decide how to use it.
According to the team, the goal is to correct a structural imbalance that has turned many stablecoins into highly profitable businesses for issuers, but opaque ones for users.
Anthony Leutenegger, CEO of Aragon and founder of Generic, explained that the protocol is designed as a neutral and decentralized layer, not as a traditional issuer. By not controlling issuance, Generic avoids one of the main points of regulatory friction. Furthermore, by decoupling the yield from the asset itself, the protocol allows GUSD's partners to decide how to redistribute that value programmatically, compliantly, and without custody.
Topic Opinion:
GUSD is not just a new stablecoin; it's a technical response to a political problem that remains unresolved. Instead of waiting for Congress to decide who can pay yield and how, Generic redefines the game: it turns yield into infrastructure, not corporate profit.
💬 Do you think this model can avoid the regulatory clash that traditional stablecoins face?
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