Latest news with #USBancorp
Globe and Mail
4 days ago
- Business
- Globe and Mail
Senate Passes Stablecoin GENIUS Act: A Major Win for Large Banks?
On Tuesday, the Senate approved the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) to establish the first federal framework for dollar-pegged cryptocurrencies known as stablecoins. This is being considered a big victory for the U.S. crypto industry and large U.S. banks like Bank of America BAC, U.S. Bancorp USB and Fifth Third Bancorp FITB, which have been looking for favorable regulation before integrating stablecoins into their infrastructure. What is the GENIUS Act? The GENIUS Act, introduced in February 2025, after a public draft was released in October 2024, defines payment stablecoins as digital assets for payment or settlement that are pegged to a fixed value, require one-to-one reserves, and prohibit algorithmic stablecoins. It explicitly prevents them from being classified as securities and sets distinct regulatory limits—federal oversight for issuers with more than $10 billion in assets, and state regulation for smaller ones. It also mandates monthly reserve audits and anti-money laundering (AML) compliance. The Act is yet to receive approval from the House and President Trump before it can be turned into a legislative law. How Will the GENIUS Act Benefit Large US Banks & Other Firms? Stablecoins are viewed by their proponents as a more stable alternative to volatile cryptocurrencies, offering a secure way to store value by pegging them to assets like the U.S. dollar. Their rapid settlement and programmability could enhance cross-border payments and expand access to the dollar. However, critics remain concerned about potential risks, such as the threat of panic among investors and sudden mass withdrawals. If the legislation is passed in the House, it is likely to trigger a rise in new stablecoin issuers, as major traditional firms, including large banks and major retail chains like Amazon Inc. AMZN and Walmart Inc. WMT, are reportedly already considering the possibility of launching their own digital currencies. Last week, at an industry conference in New York, senior executives of Bank of America, Fifth Third Bancorp, and U.S. Bancorp stated that they are open to adopting stablecoins. Further, the Wall Street Journal reported last week that Amazon and Walmart are exploring stablecoin opportunities. This new wave of competition could disrupt the traditional payment infrastructure, specifically if merchants seek to get around conventional card networks like Visa and Mastercard. If stablecoins continue to gain traction, large global banks are set to benefit the most, given their solid liquidity positions. As stablecoins offer yield opportunities, traditional banks may need to increase deposit rates to stay competitive. While banks like Bank of America, Fifth Third and U.S. Bancorp are well-positioned to deal with the changes, many smaller regional banks could face greater challenges. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (AMZN): Free Stock Analysis Report Bank of America Corporation (BAC): Free Stock Analysis Report Fifth Third Bancorp (FITB): Free Stock Analysis Report Walmart Inc. (WMT): Free Stock Analysis Report U.S. Bancorp (USB): Free Stock Analysis Report
Time of India
6 days ago
- Business
- Time of India
Many exporters no longer want dollars, US bank executive says
When Paula Comings , the head of currency sales for US Bancorp, talks to US importers, she increasingly hears the same message: Their foreign counterparties no longer want to be paid in dollars. Instead, they ask for settlement in euros, Chinese renminbi , the Mexican peso and the Canadian dollar, looking to limit their exposure to further swings in the greenback. 'A lot of clients previously were reluctant because dollars were sacred in the eyes of the supplier,' Comings said. 'Now the vibe from overseas vendors seems to be, 'Just give us our currency.'' Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like If You Eat Ginger Everyday for 1 Month This is What Happens Tips and Tricks Undo While the dollar saw a brief boost amid the turmoil in the Middle East, the currency is still about 8% lower this year against a basket of other currencies. That followed a steep gain of 7% in the final quarter of 2024, according to a Bloomberg index. This volatility, which complicates pricing decisions and poses earnings risks, increasingly means the dollar is falling out of favour. Bloomberg Some US Bank clients offer a glimpse into this trend. A lumber company from the Midwest now converts its US cash into euros before paying for hardwood imports from Europe — a change from its previous practice of simply sending dollars. The move was spurred in part by a 2% discount offered by its European supplier for making payments in the single currency. Live Events Another client, a homeware retailer that imports from China, renegotiated its terms with suppliers and plans to settle its next bill in yuan. A third customer, a US food company sourcing equipment from Italy, agreed to pay its dues in the common currency, causing it to receive a more favorable rate on a purchase worth €400,000 ($463,120). 'The change is difficult to quantify in real time, but in markets from East Asia to Latin America, a growing number of exporters are opting to denominate contracts in euro, yuan, or even local currencies,' said Karl Schamotta, chief market strategist at cross-border payments firm Corpay in Toronto. Trade invoices will be one area where the dollar's dominance comes under pressure, Citigroup Inc. strategists including Dirk Willer and Adam Pickett wrote in a recent note. 'We think it will take further 'trade blocs' across LatAm and Asia to emerge — possibly encouraged by the US trade war — to see larger shifts away from the dollar in trade invoicing.' Across the Americas, the currency accounted for nearly all export invoices on average each year from 1999 to 2019, according to the latest data from the International Monetary Fund and the Federal Reserve Bank of New York. In the Asia Pacific region, that figure stood at about 75%. Europe, where intra-bloc trade prevails, saw a significantly smaller share of exports denominated in dollars. While it remains to be seen if and when the shift manifests itself in official data, overseas vendors wanting to transact in local currencies 'could speak to the dollar's reputation,' US Bank's Comings said.
Yahoo
6 days ago
- Business
- Yahoo
Many Exporters No Longer Want Dollars, US Bank Executive Says
(Bloomberg) -- When Paula Comings, the head of currency sales for US Bancorp, talks to US importers, she increasingly hears the same message: Their foreign counterparties no longer want to be paid in dollars. As Part of a $45 Billion Push, ICE Prepares for a Vast Expansion of Detention Space As American Architects Gather in Boston, Retrofits Are All the Rage Instead, they ask for settlement in euros, Chinese renminbi, the Mexican peso and the Canadian dollar, looking to limit their exposure to further swings in the greenback. 'A lot of clients previously were reluctant because dollars were sacred in the eyes of the supplier,' Comings said. 'Now the vibe from overseas vendors seems to be, 'Just give us our currency.'' While the dollar saw a brief boost amid the turmoil in the Middle East, the currency is still about 8% lower this year against a basket of other currencies. That followed a steep gain of 7% in the final quarter of 2024, according to a Bloomberg index. This volatility, which complicates pricing decisions and poses earnings risks, increasingly means the dollar is falling out of favor. Some US Bank clients offer a glimpse into this trend. A lumber company from the Midwest now converts its US cash into euros before paying for hardwood imports from Europe — a change from its previous practice of simply sending dollars. The move was spurred in part by a 2% discount offered by its European supplier for making payments in the single currency. Another client, a homeware retailer that imports from China, renegotiated its terms with suppliers and plans to settle its next bill in yuan. A third customer, a US food company sourcing equipment from Italy, agreed to pay its dues in the common currency, causing it to receive a more favorable rate on a purchase worth €400,000 ($463,120). 'The change is difficult to quantify in real time, but in markets from East Asia to Latin America, a growing number of exporters are opting to denominate contracts in euro, yuan, or even local currencies,' said Karl Schamotta, chief market strategist at cross-border payments firm Corpay in Toronto. Trade invoices will be one area where the dollar's dominance comes under pressure, Citigroup Inc. strategists including Dirk Willer and Adam Pickett wrote in a recent note. 'We think it will take further 'trade blocs' across LatAm and Asia to emerge — possibly encouraged by the US trade war — to see larger shifts away from the dollar in trade invoicing.' Across the Americas, the currency accounted for nearly all export invoices on average each year from 1999 to 2019, according to the latest data from the International Monetary Fund and the Federal Reserve Bank of New York. In the Asia Pacific region, that figure stood at about 75%. Europe, where intra-bloc trade prevails, saw a significantly smaller share of exports denominated in dollars. While it remains to be seen if and when the shift manifests itself in official data, overseas vendors wanting to transact in local currencies 'could speak to the dollar's reputation,' US Bank's Comings said. American Mid: Hampton Inn's Good-Enough Formula for World Domination The Spying Scandal Rocking the World of HR Software How a Tiny Middleman Could Access Two-Factor Login Codes From Tech Giants As Companies Abandon Climate Pledges, Is There a Silver Lining? New Grads Join Worst Entry-Level Job Market in Years ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
6 days ago
- Business
- Bloomberg
Many Exporters No Longer Want Dollars, US Bank Executive Says
When Paula Comings, the head of currency sales for US Bancorp, talks to US importers, she increasingly hears the same message: Their foreign counterparties no longer want to be paid in dollars. Instead, they ask for settlement in euros, Chinese renminbi, the Mexican peso and the Canadian dollar, looking to limit their exposure to further swings in the greenback.
Globe and Mail
6 days ago
- Business
- Globe and Mail
BAC, USB & Fifth Third Open to Stablecoins Amid Regulatory Shift
At an industry conference in New York last week, senior executives of Bank of America BAC, Fifth Third Bancorp FITB and U.S. Bancorp USB stated that they are open to adopting stablecoins as they anticipate favorable regulations to develop. Recent Regulatory Developments for Stablecoins U.S. regulators are rapidly advancing their efforts to regulate payment stablecoins, with two major bipartisan bills introduced in early 2025: the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act) and the STABLE Act (Stablecoin Transparency and Accountability for a Better Ledger Economy Act). Both aim to establish a clear legal framework for dollar-denominated stablecoins, enhance client protection and ensure the United States maintains its monetary superiority in digital finance. The GENIUS Act, introduced in February 2025, after a public draft was released in October 2024, defines payment stablecoins as digital assets for payment or settlement that are pegged to a fixed value, require one-to-one reserves, and prohibit algorithmic stablecoins. It explicitly prevents them from being classified as securities and sets distinct regulatory limits—federal oversight for issuers with more than $10 billion in assets, and state regulation for smaller ones. It also mandates monthly reserve audits and anti-money laundering (AML) compliance. Just days later, the STABLE Act was unveiled in the House and introduced formally in March 2025. It proposes a more centralized regulatory structure, giving federal agencies ultimate authority even over state-approved issuers. It is similar to the GENIUS Act in its reserve requirements and prohibition on algorithmic stablecoins, but adds a two-year moratorium on such models. Both bills build upon earlier legislative efforts, including the 2023 McHenry Bill and the 2024 Lummis-Gillibrand proposal, reflecting the rising urgency in Washington to bring stablecoins under formal regulation. Why Are BAC & USB Bullish on Stablecoins? The optimism for stablecoins stems from the most crypto-favorable U.S. administration the industry has encountered in 16 years. The U.S. Senate is advancing the GENIUS Act, with a final vote expected later this week. Moreover, the House is reviewing the STABLE Act. Eventually, both bills could be combined into a single piece of legislation. Given the shifting political dynamics, several banking executives seem to have let go of their earlier skepticism toward crypto. According to the Wall Street Journal, Bank of America is engaged in talks with other major institutions about the potential launch of a joint stablecoin. Brian Moynihan, CEO of Bank of America, stated, 'If they get the GENIUS Act or the STABLE Act or anything like that passed … that clarity will allow us to figure out whether there's really a business proposition.' 'At the end of the day, if people use it as a transactional account, we have to be ready to have those transactional deposits stay within our franchise, or else you'll see a major migration of deposits outside the industry," Moynihan further stated. Bryan Preston, CFO of Fifth Third, stated, 'stablecoins could be used to make international payments instantaneously, or to move collateral instantly from market to market. We think that there are some interesting places where stablecoin can really create some efficiencies in the commerce space.' Gunjan Kedia, CEO of U.S. Bancorp, referred to her banking experience to indicate how much the new regulatory environment has changed the crypto outlook. She also stated that the bank is observing how it could help use stablecoin for payments, but much of that will depend on how the new regulations shape up. If stablecoins continue to gain traction, large global banks are set to benefit the most, given their solid liquidity positions. As stablecoins offer yield opportunities, traditional banks may need to increase deposit rates to stay competitive. While banks like Bank of America, Fifth Third, and U.S. Bancorp are well-positioned to deal with the changes, many smaller regional banks could face greater challenges. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%. Free: See Our Top Stock And 4 Runners Up Bank of America Corporation (BAC): Free Stock Analysis Report U.S. Bancorp (USB): Free Stock Analysis Report
