Latest news with #digitalfinance
Yahoo
an hour ago
- Business
- Yahoo
Circle Skyrockets 53% After Senate Passes Landmark Stablecoin Bill
Shares of Circle (CRCL, Financials) surged 53% this week after the U.S. Senate passed the GENIUS Act; the first major federal legislation to regulate stablecoins. The bill outlines full reserve requirements; monthly audits; and anti-money laundering rulesproviding long-awaited clarity to the $150 billion stablecoin market. The rally pushed Circle stock from $148 to $227; just weeks after its NYSE debut. Backed by rising momentum, Coinbase (COIN, Financials) also gained 20% since Wednesday. Circle CEO Jeremy Allaire called the bill's passage history in the making; praising it as a leap forward for U.S. competitiveness in digital finance. The GENIUS Act, now headed to the House, has been championed by President Donald Trumpwho's pushed crypto-friendly policies, ended enforcement actions, and even launched a national Bitcoin reserve. With Washington warming up to crypto, major tech firms like Meta, Google, Airbnb, and X are said to be exploring stablecoin integrationfueling speculation that mainstream adoption may not be far off. This article first appeared on GuruFocus. Sign in to access your portfolio
Forbes
a day ago
- Business
- Forbes
A New Rulebook For Stablecoins ...The GENIUS Act Explained
Stablecoin backed by the U.S. dollar. The era of unguided stablecoin issuance in the United States might be ending. U.S. Senator Bill Hagerty's GENIUS Act—short for Guiding and Establishing National Innovation for U.S. Stablecoins—clears the U.S. Senate. With it, Congress begins to draw a definitive line around one of the most consequential innovations in digital finance: a dollar-backed stablecoin. Unlike previous legislative efforts that stumbled over partisan divides or technical incoherence, the GENIUS Act passed with bipartisan support. It is a serious, detailed, and targeted law that understands what stablecoins are and how they should function in a modern economy. At first glance, the law does not criminalize innovation. It clarifies the rules of engagement. And that is precisely what the crypto ecosystem needed. At its core, the GENIUS Act establishes that only licensed and supervised entities can issue payment stablecoins in the United States. These are digital assets redeemable for U.S. dollars at par value, intended for payments and settlements. Under the law, only three types of issuers are permitted: (1) subsidiaries of insured banks and credit unions, (2) specially chartered nonbank firms approved at the federal level, and (3) entities regulated by states whose regimes are certified by the U.S. Treasury as substantially similar to federal standards. Presumably, if an issuer does not fall under these three types, that issuer cannot issue stablecoins to U.S. residents. Each stablecoin must be backed one-to-one with safe, liquid assets. These seemingly include U.S. dollars, demand deposits, short-term Treasuries, and overnight repurchase agreements. Annual audits are required only for issuers with more than $50 billion in outstanding stablecoins. The law also bars stablecoin issuers from engaging in other business lines unless explicitly authorized. In short, the law creates a narrow but stable foundation for the industry to build on. Importantly, the GENIUS Act does not force every stablecoin issuer into the federal pipeline immediately. Smaller firms, those with less than $50 billion in market capitalization, can still operate under state supervision, provided their state regime meets baseline federal standards. However, once they grow past that threshold, they must transition to federal oversight within 360 days. This federal trigger mechanism ostensibly allows for innovation and entry while scaling supervision proportionally to systemic risk. The law also strengthens consumer protections. Stablecoins cannot be marketed as insured by the federal government. Custodians must segregate customer assets and are legally barred from treating them as proprietary. In the event of an issuer bankruptcy, stablecoin holders are granted first priority over reserve assets. This change to the bankruptcy code brings stablecoins closer to the treatment consumers already expect from cash equivalents. What makes the GENIUS Act so notable is that it finally treats stablecoins as payment infrastructure, not speculative investment vehicles. The law strongly signals that properly structured stablecoins should not be treated as securities or commodities, though further clarification may still be needed from regulators. This may help resolve years of jurisdictional confusion and open the door for financial institutions, payment processors, and fintech firms to build with confidence. Still, the law imposes serious limits. It effectively shuts out anonymous protocols, offshore entities, and experimental designs that cannot meet the legal and capital requirements. Decentralized finance platforms and unaudited startups will have to either partner with compliant issuers or leave the U.S. market. Some will view this as a loss for innovation. Others will recognize it as a necessary step toward maturity. There is also unfinished business. The law calls for further study of algorithmic and self-collateralized stablecoins, leaving open the possibility that new models could be incorporated under future amendments. It also encourages regulators to develop interoperability standards, though it stops short of mandating any specific technical solution. This is the correct avenue because regulation should evolve alongside the technology, not try to freeze it in place. Now that the GENIUS Act has passed the Senate and awaits House approval, the question becomes implementation. The Treasury Department, Office of the Comptroller of the Currency, and state regulators must coordinate to certify regimes, approve new charters, and monitor compliance. If done well, this could serve as a model for other areas of crypto regulation. If done poorly, it could entrench incumbents and stifle new entrants. But the legislation itself attempts to address the fundamental risks posed by unregulated digital dollars while preserving room for innovation. It avoids the false choice between banning stablecoins and embracing chaos. It gives the industry a real path to legitimacy—one that depends on disclosures, audits, and public trust, not hype. Ultimately, the stablecoin market will look different going forward. Issuers will need compliance teams. Consumers will get clearer information and stronger protections. Some projects will leave. Others will grow stronger. That is what happens when technology enters the domain of public infrastructure. The GENIUS Act gives stablecoins some guidance to follow. Now, we wait for it to be signed into law, and meanwhile, the industry must catch up.
Bloomberg
2 days ago
- Business
- Bloomberg
Klarna Boosts ‘Super-App' Ambitions With Mobile Service
Klarna CEO Sebastian Siemiatkowski discusses why the fintech startup is launching a mobile service and how the future of digital financial assistants could impact utility prices. He joins Caroline Hyde and Ed Ludlow on 'Bloomberg Tech.' (Source: Bloomberg)
Finextra
3 days ago
- Business
- Finextra
StraitsX unveils institutional-grade infrastructure for fiat-stablecoin settlement
StraitsX, the stablecoin-native settlement layer for global finance, today launched Dedicated Virtual Accounts (DVA/+), a next-generation solution delivering compliant USD banking access and real-time stablecoin connectivity to crypto-native institutions. 0 By providing each client with a unique, named virtual account underpinned by institutional-grade compliance, DVA/+ simplifies reconciliation, enhances operational transparency, and bridges the gap between traditional finance and tokenised settlements. As regulators tighten scrutiny and markets demand more transparency, DVA/+ gives exchanges, wallets, and market makers a critical missing link: direct access to programmable, compliant fiat rails without needing to build or maintain their own banking infrastructure. Through StraitsX's trusted banking partners, eligible clients can now issue named USD virtual accounts with full COBO (Collect on Behalf of) and POBO (Pay on Behalf Of) functionality. These accounts are natively integrated with stablecoins like XUSD, StraitsX's USD-pegged stablecoin, enabling fast, trusted movement between fiat and digital assets across borders and counterparties. Redefining Connectivity for Institutional-Grade Digital Finance As stablecoins become increasingly embedded in real-world value exchange, DVA/+ meets the rising demand for programmable, compliant financial infrastructure. Built for operational scale and regulatory clarity, DVA/+ offers: • Named USD or SGD virtual accounts under each client's entity • Full COBO and POBO functionality for global fiat movement • Integrated stablecoin support via StraitsX's XUSD • Real-time fund visibility and programmable treasury workflows • API-first design for seamless, automated back-end integration Core Components of the DVA/+ Infrastructure • DVA: Named Virtual Accounts (VAs) backed by top-tier banking partners • DVA+: Enhanced Compliance access for Named VAs connected to top-tier banking partners 'DVA/+ is a turning point in how institutions connect to the future of digital finance. With DVA/+, we're removing the barriers that have long separated traditional finance from crypto-natives, and replacing them with trusted, programmable rails that meet the highest standards of compliance and scalability,' said Liu Tianwei, CEO and Co-Founder of StraitsX. 'This is a critical step in our broader mission to enable seamless value movement across currencies, networks, and jurisdictions, for any institution looking to operate at the frontier of regulated digital finance. We invite exchanges, wallet players, fintech platforms, and other crypto-native institutions to explore how DVA/+ can anchor their payment infrastructure and unlock compliant, scalable liquidity across the digital asset ecosystem.' From Stablecoin Issuer to Strategic Infrastructure Partner The launch of DVA/+ marks the first milestone under StraitsX's refreshed brand identity, underscoring its evolution from a single-product stablecoin issuer to a full-stack infrastructure provider for regulated digital finance. This new identity signals a broader commitment to building trusted, compliant systems that power real-world financial use cases at scale. DVA/+ exemplifies this direction as it equips institutions with the infrastructure needed to bridge fiat and stablecoins and operate with greater speed, security, and regulatory clarity. As the digital asset economy matures, institutions are under pressure to streamline operations while meeting higher regulatory expectations. DVA/+ addresses this challenge by enabling exchanges, wallets, and market participants to access fiat and stablecoin rails without the complexity of maintaining their own banking stack. By automating settlement flows and embedding compliance into the infrastructure layer, DVA/+ helps institutions unlock faster time-to-market, more efficient treasury operations, and a higher standard of operational resilience.
Yahoo
3 days ago
- Business
- Yahoo
From pocket money to portfolio: Gen Alpha is rewriting the rules of financial literacy
Young, digital, and defining their financial future: Gen Alpha is learning to manage money as young as 7 From biometric security to agentic AI, Asia-Pacific consumers want smarter – not more – innovation SINGAPORE, June 18, 2025 /PRNewswire/ -- Gen Alpha (the digital-first generation born 2010 onwards) isn't waiting to grow up before engaging with money — they're already making their mark on the world of digital finance. In the Asia-Pacific (APAC) region, new research from Mastercard shows that 94% of Gen Alpha children[1] already have access to a financial account[2], while many hold digital wallets (58%), investment accounts (49%), and credit cards (48%). Nearly half (47%) of Gen Alpha parents say their children have introduced them to digital financial tools they did not know about, flipping the traditional script of financial education. Preparing Gen Alpha for a digital-first financial future Gen Alpha parents anticipate their children will grow up in a digital-first financial world—one where they may never own a physical wallet (72%) or carry cash. And while kids are gaining early exposure to money matters, many Gen Alpha parents in APAC are actively working to keep pace: 63% believe their children are more financially savvy than they were at the same age. 60% are unsure that their financial knowledge applies to their children's generation. 53% admit their kids know more about new payment methods than they do. 82% wish there were more tools available to teach children about finances. With the rise of digital wallets, mobile payments and virtual accounts, APAC families are calling for smarter, future-ready solutions that will set their children up for success. This gives visionary banks and financial institutions an opportunity to pave the way by delivering digital tools that not only simplify money management but also support how children learn about finances. For instance, Gen Alpha parents are showing strong interest in features like educational content (67%), parental controls (57%), seamless account transfers (55%), real-world learning simulations (48%), and gamified experiences (43%). "To truly connect with Gen Alpha—and their parents—the payments sector needs to speak their language. These kids aren't here to play—they're here to slay, save, and spend smart. They're low-key money bosses, tapping phones before they can tie shoes and turning budgeting apps into their playground. Cash? Not their go-to. Today, it's all Tap & Go. For banks and FIs, the signal's loud and clear: Gen Alpha expects payment experiences that match their vibe—seamless, savvy, and built-in from day one. Think custom digital wallets, in-app payments that just flow, and secure tools that level up as their finance game evolves," said Sandeep Malhotra, Executive Vice President, Core Payments, Asia Pacific, Mastercard. Innovation without overload: APAC leads globally, but adoption is uneven Gen Alpha may be early adopters, but APAC consumers of all ages are embracing payment innovation: More than half (53%) prefer using new and innovative payment methods — such as Tap & Go mobile payments, biometric payments, QR codes and mobile wallets — over traditional methods like cash or manual card entry, reflecting a widespread appetite for innovation. This compares to just 25% in North America and 24% in Europe, underlining APAC's receptivity to adopting emerging digital payment solutions. Yet, this enthusiasm isn't evenly distributed across the region: 70% of consumers in Vietnam prefer new payment methods, while only 35% in Japan do, with the percentage even lower in Australia (25%). Several factors contribute to this trend: markets like Vietnam, Indonesia, and Malaysia are leapfrogging straight into mobile-first ecosystems, while more developed economies such as Australia and Japan still rely heavily on more entrenched payments infrastructure like physical cards and cash. This paradox extends to emerging technologies: Although 86% of APAC consumers are keen to use AI to manage their finances — particularly for fraud detection, payment automation, product personalization and predicting financial outcomes — eagerness varies across markets. In Australia and Japan, interest in AI is focused on practical applications like security rather than financial planning or personalization. These differences highlight the need for financial innovations that are relevant by design, not retrofitted from legacy systems. That's why Mastercard is investing in mobile-first and agentic AI-powered experiences like Agent Pay — which support decision-making at every step of the commerce journey. Convenience is now king: What APAC consumers expect As payment options grow, consumers are seeking hyper-convenient ways to manage money that fit seamlessly with their digital usage habits. They want flexibility to customize how they pay, tapping into digitally native methods like peer-to-peer or peer-to-merchant payments, QR codes, wearables and social commerce. Super apps are the new baseline: 70% of APAC consumers use or want all-in-one apps to manage payments, shopping, and more, with Indonesia (86%) and China (84%) leading the pack. As these platforms become mainstream, payment tools must meet consumers where they already are — not the other way around. Social shopping is shaping commerce: 39% of APAC consumers have bought through chat or social apps, with China (61%) and Vietnam (56%) in front. More than three in five consumers (64%) say influencers now shape their buying decisions. Embedding seamless payments into digital leisure spaces like social media apps is key to enabling this shift from browsing to buying. Trust and security are top of mind: While 74% of APAC consumers see biometric payments as more secure than traditional methods, 78% are concerned about who has access to their data. This tension highlights a broader challenge to simplify security without sacrificing control and convenience. Mastercard solutions like tokenization, Payment Passkeys and AI-driven authentication help bridge this trust gap. "Gen A's not just watching trends, they're setting them—and if your brand isn't flexing in their digital wallet or showing up in their feeds, you're basically invisible. They vibe with brands that keep it 100—authentic, ethical, and super aesthetic. And here's the real flex: when money tools are intuitive and secure, they don't just manage spending—they build confidence. That's when innovation hits different," added Malhotra. Research methodology The findings in this release are based on a global research study conducted by The Harris Poll on behalf of Mastercard. The survey gathered responses from 19,302 consumers across five global regions, including 9,131 consumers in Asia Pacific. The study was conducted via a quantitative online survey, administered from September 4 to September 20, 2024. It covered five regions: North America, Latin America and Caribbean, Europe, Middle East & Africa, and Asia Pacific. APAC markets included Australia, China, India, Indonesia, Japan, Malaysia, Singapore, Thailand, and Vietnam. About Mastercard Mastercard powers economies and empowers people in 200+ countries and territories worldwide. Together with our customers, we're building a resilient economy where everyone can prosper. We support a wide range of digital payments choices, making transactions secure, simple, smart and accessible. Our technology and innovation, partnerships and networks combine to deliver a unique set of products and services that help people, businesses and governments realize their greatest potential. [1] The mean and median age of Gen Alpha children represented by their parents in this study is 7.24 years and 7 years respectively. [2] These include account(s) in their own names and account(s) owned by an adult such as their parent(s) or guardian(s). View original content to download multimedia: SOURCE Mastercard 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
