Stablecoin Adoption Set to Surge After GENIUS Act, Hit $4T in Cross-Border Volume: EY Survey

Stablecoin adoption is gaining momentum among corporates and financial institutions driven by regulatory clarity and cost-savings in global money transfers, according to a survey by EY-Parthenon. Conducted with 350 executives in June after the Senate passed the GENIUS Act, the survey found that 13% of firms already use stablecoins, mainly for cross-border payments. Among those who didn't use stablecoins, 54% expected to adopt them within the next six to 12 months. Regulatory clarity provided by the GENIUS Act was widely viewed as a turning point. The legislation, which was signed into law in July, provided long-awaited rules for U.S. dollar-denominated stablecoins, including reserve requirements and issuer approval processes. Executives said in the survey the law reduces uncertainty around liquidity, tax treatment and custodial services. (EY-Parthenon) [https://cdn.sanity.io/images/s3y3vcno/production/4dd331adcb52a247d18d4962c42fdf676e743330-1974x902.png?auto=format] Cost savings are also a key driver for adoption, with 41% of current users reporting at least a 10% reduction in expenses from using stablecoins in international transactions. Respondents also saw stablecoins as a long-term fixture in global finance. By 2030, they estimate stablecoins could facilitate between 5% and 10% of all cross-border payments,…