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The GENIUS stablecoin act may cease banks ripping off retail depositors, with tech giants Apple, Google, and Meta set to problem them by embedding high-yield stablecoins into their platforms.
That’s in response to Tushar Jain, a co-founder of crypto fund manger Multicoin Capital.
“The GENIUS Invoice is the start of the top for banks’ potential to tear off their retail depositors with minimal curiosity,” Jain wrote in an X submit. ”Banks are going to should pay extra curiosity to depositors and their earnings will considerably undergo because of this.”
Tech Giants Will Compete With Banks Utilizing “Mega Distribution” Platforms
Jain mentioned the tech giants will use their ”mega distribution” platforms to supply higher yields to depositors, present 24/7 funds, and improved digital experiences.
His submit follows a June article by Fortune journal that mentioned that Apple, Google, Airbnb, and X had been amongst a few of the prime tech corporations exploring issuing their very own stablecoins.
Bitwise Chief Government Officer (CEO) Hunter Horsley has come to the identical conclusion as Jain, arguing in a Oct. 6 submit on X that the tech giants will seemingly launch their very own wallets after which add stablecoin integration into them as the primary transfer to tackle banks.
“Software program is consuming the world,” he mentioned. ”The monetary system is subsequent.”
Meta, Google, Apple, and so forth are going to compete with banks.
By stablecoins, you’ll be capable to have deposits with curiosity with them.
By tokenization, you’ll be capable to commerce crypto and securities with them.
Tech cos have experimented with monetary companies earlier than.…
— Hunter Horsley (@HHorsley) October 6, 2025
Stripe CEO Patrick Collison wrote in a submit on X over the weekend that the common rate of interest for financial savings accounts within the US is 0.40%, and solely 0.25% in Europe.
Charges for Tether’s USDT and Circle’s USD Coin (USDC) on the decentralized finance (DeFi) platform Aave stand at 4.02% and three.69%, respectively.
“Client hostile” banks are in a ”dropping place,” he mentioned
$6.6 Trillion Might Depart The Banking System, US Treasury Warns
The US Division of the Treasury estimated in April that the mass adoption of stablecoins may result in $6.6 trillion in outflows from the normal banking system.
The market capitalization of stablecoins stands at a report excessive $302.411 billion, up from round $255 billion in July, in response to DefiLlama.
Stablecoin market cap (Supply: DefiLlama)
The sector’s market cap climbed by greater than $5.4 billion prior to now week alone.
However the continued development of the stablecoin market could find yourself amplifying deposit flight threat, “particularly in occasions of stress, that can undermine credit score creation all through the economic system,” the Financial institution Coverage Institute warned in August.
“The corresponding discount in credit score provide means greater rates of interest, fewer loans, and elevated prices for Foremost Avenue companies and households,” it mentioned.
Banking Teams Already Tried To Shutdown Stablecoin Yields
The GENIUS Act, which was enacted in July this 12 months, establishes the regulatory tips for stablecoin companies seeking to subject their tokens within the US.
It additionally prohibits stablecoin issuers from providing curiosity or yield to token holders, however doesn’t explicitly prolong the ban to 3rd events resembling crypto exchanges or enterprise associates. This leaves the door open for stablecoin issuers to avoid the ban and nonetheless provide yields to their shoppers.
For instance, USD Coin (USDC) issuer Circle just isn’t allowed to supply direct yields, however crypto alternate Coinbase can.
Lend USDC. Earn as much as 10%.
Now stay in all launch markets. pic.twitter.com/mxcu2ppEZ7
— Coinbase 🛡️ (@coinbase) October 2, 2025
“The banking foyer tried to guard their earnings with the Genius Act’s prohibition on passing curiosity to stablecoin holders however that’s simply circumvented as you may see by Coinbase’s yield sharing with prospects,” mentioned Jain.
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