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Keywords = stablecoin distributor

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11 pages, 386 KB  
Communication
GENIUS at Work in the US Financial System
by Jimmie H. Lenz and Reid Tymcio
J. Risk Financ. Manag. 2025, 18(11), 594; https://doi.org/10.3390/jrfm18110594 - 23 Oct 2025
Viewed by 2427
Abstract
This paper examines the profitability of Stablecoin Issuance as regulated by the GENIUS Act. We provide an analysis of the revenues and expenses that can be expected to be earned and incurred by any regulated Stablecoin Issuer, as well as the competitive dynamics [...] Read more.
This paper examines the profitability of Stablecoin Issuance as regulated by the GENIUS Act. We provide an analysis of the revenues and expenses that can be expected to be earned and incurred by any regulated Stablecoin Issuer, as well as the competitive dynamics at work in the industry. We argue that, since Issuers regularly pay a large portion of their reserve income to distributors, Issuer profitability is not a function of reserve yield but, rather, is determined by economies of scale and operational efficiencies. We also analyze the dynamics at work in the market for stablecoin distribution and conclude that US banks with brokerage subsidiaries are the firms most well-positioned to dominate both the issuance and distribution of stablecoins regulated under the GENIUS Act. Full article
(This article belongs to the Section Banking and Finance)
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