Key Takeaways:
- The GENIUS Act could shift trillions from low-interest bank deposits into higher-yielding stablecoins, pressuring traditional banks.
- Tech giants like Apple, Meta, and Google are expected to enter the stablecoin market, offering better yields and 24/7 services.
- Banks may be forced to raise deposit interest rates, cutting into profits, as stablecoin adoption grows and regulatory loopholes persist.
The newly enacted GENIUS Act could trigger a major shift of retail deposits away from traditional banks and into stablecoins that offer higher yields.
Multicoin Capital co-founder Tushar Jain said the bill marks “the beginning of the end” for banks’ ability to pay minimal interest, predicting that tech giants like Meta, Google, and Apple will soon compete with banks for deposits through blockchain-based payment systems.
The Genius Bill is the beginning of the end for banks' ability to rip off their retail depositors with minimal interest. Post Genius Bill I expect the big tech giants with mega distribution (Meta, Google, Apple, etc) to start competing with banks for retail deposits.
— Tushar Jain (@TusharJain_) October 4, 2025
The tech… https://t.co/SCtHrgNeLI
While the Act prohibits direct interest payments on stablecoins, it doesn’t ban affiliated firms from offering yield, raising concerns among banking groups.
The U.S. Treasury estimates that up to $6.6 trillion could exit the banking sector if stablecoins gain mass adoption, potentially leading to tighter credit and higher borrowing costs.
Currently, banks offer around 0.4% on savings, while Tether (USDT) and USD Coin (USDC) yield over 3–4% on decentralized platforms.
Analysts expect the stablecoin market, now valued at $308 billion, to surge to $2 trillion by 2028, potentially forcing banks to raise deposit rates or risk losing customers to high-yield blockchain alternatives.
About The Author
Adam Morris, the co-founder of Crypto Head and a respected crypto expert, offers insightful commentary and analysis on cryptocurrency, NFTs, and the evolving digital landscape.
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