BlackRock Names Stablecoins as ‘Mega Force’ Following GENIUS Act Passage

• BlackRock calls stablecoins a major financial force after the GENIUS Act became law. 

• The new regulations require stablecoin issuers back tokens with dollars and Treasury securities. 

• Major banks like JPMorgan and Bank of America are now planning their stablecoin offerings.

BlackRock, the world’s largest asset manager, has identified stablecoins as one of five critical “mega forces” that will reshape global financial returns. The firm’s assessment comes after the landmark GENIUS Act, which became the first major cryptocurrency legislation signed into law by President Donald Trump.

The asset manager delivered this analysis in a client note, emphasizing how the new regulatory framework has solidified stablecoins’ position in the global financial ecosystem. BlackRock highlighted how the legislation reinforces the long-term investment case for Bitcoin and dollar-pegged digital assets.

GENIUS Act Transforms Stablecoin Regulatory Landscape

The GENIUS Act introduces comprehensive regulations for stablecoin issuers, requiring full backing with liquid assets, including U.S. dollars and short-term Treasury securities. This 1:1 backing mandate aims to provide stability and consumer protection in the digital asset space.

BlackRock noted that these requirements could boost Treasury demand, though the firm expects minimal impact on yield rates. The asset manager sees potential for stablecoins to strengthen dollar dominance in emerging markets, where digital currencies offer greater accessibility than traditional banking systems.

Treasury Secretary Scott Bessent previously projected stablecoins could reach a $3.7 trillion market valuation by 2030. Current market data from CoinMarketCap shows stablecoins maintain a $273 billion market capitalization, representing approximately 7% of the total cryptocurrency market. Tether’s USDT and Circle’s USDC lead this sector.

Traditional Finance Giants Enter Stablecoin Race

Google Trends data reveals that search interest for stablecoins has reached all-time highs since the passage of the GENIUS Act. This surge indicates growing retail investor appetite for regulatory-compliant digital assets.

Major financial institutions are actively exploring stablecoin initiatives. Interactive Brokers is investigating its stablecoin issuance to enable continuous brokerage account funding. Three of the four largest U.S. banks, JPMorgan, Bank of America, and Citi, are considering stablecoin offerings.

JPMorgan has unveiled the JPMD coin, a dollar-backed deposit token designed for customer transactions. This move signals traditional banking’s shift toward digital asset integration.

Asset management firm Bitwise declared stablecoins are “going parabolic,” citing exponential growth in market capitalization and transaction volumes since 2020. The firm’s analysis supports BlackRock’s assessment of stablecoins as transformative financial instruments.

The convergence of regulatory clarity, institutional adoption, and technological advancement positions stablecoins as cornerstone elements of future financial infrastructure. BlackRock’s endorsement validates the sector’s evolution from experimental technology to a mainstream financial tool.