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By Manya Saini
(Reuters) -The U.S. Senate has passed a bill to create a regulatory framework for stablecoins, a once-niche corner of the crypto industry that is gaining traction among global companies.
Stablecoins, a type of cryptocurrency designed to maintain a constant value – typically pegged 1:1 to the U.S. dollar – are widely used by crypto traders to move funds between tokens.
The Republican-controlled House of Representatives must pass its version of the bill, known as the GENIUS Act, before it heads to President Donald Trump’s desk for approval.
Analysts say the bill if passed, could be a key catalyst for more companies across sectors to adopt stablecoins, as it would provide much-needed regulatory and legislative clarity.
If signed into law, stablecoins would be required to be backed by liquid assets - such as U.S. dollars and short-term Treasury bills - and for issuers to publicly disclose the composition of their reserves on a monthly basis.
Here is an overview of major companies globally that have launched, or are considering launching, their own stablecoins:
MAJOR U.S. BANKS:
Big U.S. banks are holding internal discussions about expanding into cryptocurrencies as they get stronger endorsements from regulators, but initial steps will be tentative, centering on pilot programs, partnerships or limited crypto trading, Reuters reported in May.
Bank of America could launch stablecoins, its CEO Brian Moynihan said earlier this year, while Morgan Stanley wants to work with regulators to see how it can be a middleman for crypto-related transactions, CEO Ted Pick said earlier this year.
BofA declined to comment, while Morgan Stanley did not respond to Reuters’ request for comment.
SOCIETE GENERALE:
The French bank said in June it plans to launch a publicly tradable, dollar-backed stablecoin through its digital asset subsidiary.
WALMART AND AMAZON:
The U.S. retail giants have recently explored issuing their own stablecoins, the Wall Street Journal reported earlier this month, citing people familiar with the matter.
"We are not piloting any programs and do not currently have any plans in place to issue our own stablecoin," Walmart (NYSE:WMT) told Reuters, adding that the retailer has not taken a public position on the GENIUS bill.
Amazon (NASDAQ:AMZN) did not respond to a Reuters request for comment.
BANCO SANTANDER SA:
The Spanish bank is mulling an expansion in digital assets, including early-stage plans to offer a stablecoin, Bloomberg News reported in May, citing people with knowledge of the matter.
The bank declined to comment on the matter, when contacted by Reuters.
WORLD LIBERTY FINANCIAL:
U.S. President Donald Trump’s World Liberty Financial crypto venture launched a dollar-pegged stablecoin this year, called USD1. The token has a market value of roughly $2.2 billion, according to CoinGecko.
PAYPAL:
The payments giant launched a U.S. dollar stablecoin in August 2023, becoming the first major financial technology firm at the time to embrace digital currencies for payments and transfers.
CIRCLE INTERNET:
The newly public company launched its flagship USDC stablecoin in 2018. It is now one of the largest stablecoins by market value, with a market cap of around $61.5 billion, according to CoinGecko.
PAXOS:
The crypto-native company issues the Global Dollar stablecoin (USDG) and the Pax Dollar (USDP), both pegged 1:1 to the U.S. dollar.
The company also issues the BUSD token in partnership with Binance, the world’s largest crypto exchange by trading volume.
TETHER:
The crypto company issues an eponymous stablecoin, which is the world’s largest by market value, according to CoinMarketCap. The USDT token, with a market cap of over $155 billion, is pegged to the U.S. dollar.
MAKERDAO:
The company issues the DAI stablecoin, which has a market value of roughly $5.4 billion and is the fourth largest globally, according to CoinMarketCap data.