1/
No, your bank doesn’t need to issue a stablecoin or a tokenized deposit 🧵
But a friend from the Fintech world - now working at a small bank - called me yesterday inquiring about what to tell his board post-GENIUS…
Here’s what I told him:
2/
No, you don’t need to issue a stablecoin.
No, GENIUS is not an existential threat to U.S. community banks.
But yes, your customers will want to receive and send stablecoin payments.
Here's why:
3/
Ever tried to pay a friend back for dinner and had to ask: "Are you on Venmo? Zelle? Cash App?"
Now imagine every major app accepts USDC (Circle’s Stablecoin). That question disappears.
Stablecoins remove friction & your customers will notice
4/
So what does your bank actually need to do?
1⃣ Accept stablecoin payments on behalf of customers
2⃣ Convert to dollars and deposit into their account, seamlessly
that’s it - start there
5/
You’ll also need to go the other direction:
3⃣ Convert USD to stablecoins so your customer can pay anyone using Cash App, Venmo, etc.
You’re not competing with stablecoins; your customer’s simply paying with them.
6/
This is about usability - US customers don’t care about holding stablecoins, they care about paying people easily
Let them receive in stables, quickly convert to USD, and then get on with your day
7/
Stablecoin rails are coming, GENIUS cleared the path, but your bank doesn’t need to rush into issuing.
You just need a plan to interoperate - that’s the game.
8/
In the upcoming @epochvc_ report: The Future of Banking with Bitcoin
We break down the "no regrets" move every bank should make to prepare for a post-GENIUS world
...on a path toward bitcoinisation
Follow me, @ericyakes , and @epochvc_ to ensure you don’t miss it
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