Key takeaways
Stablecoins are gaining momentum, with over $3.4 billion flowing in after the U.S. GENIUS Act’s signing. Institutional interest is rising in Hong Kong, but regulators warn that approvals will be strict.
Stablecoins are back in the spotlight, and regulators are leading the charge.
In just one week, over $3 billion has flowed into stablecoins as interest from U.S. officials drive institutional momentum.
With Hong Kong’s new Stablecoin Ordinance set to take effect on the 1st of August, more than 50 firms have lined up for licenses, despite warnings that approvals will be stringent and compliance-intensive.
Meanwhile, regulatory signals in the U.S. suggest a growing appetite to legitimize dollar-backed digital assets.
GENIUS Act triggers $3B market cap surge
The passage of the GENIUS Act on the 18th of July has sent a clear message to the markets.
In the week following the legislation’s signing by President Trump, over $3.4 billion flowed into the stablecoin market; a 1.32% rise in total capitalization to nearly $266 billion, per DeFiLlama data.
Source: DeFiLlama
The law introduces a dual chartering system, monthly attestations, and paves the way for bank-issued stablecoins; bringing players like Circle, Paxos, and JPMorgan’s Kinexys into sharper focus.
With new compliance rails in place, institutional adoption appears inevitable.
