GENIUS Act Passed: Why Stablecoins Might Need XRP More Than You Think

The U.S. Senate on June 17 passed the GENIUS Act with a 68–30 vote, creating the first federal framework for dollar‑pegged stablecoins.

The legislation now moves to the House and, if approved, to President Trump’s desk. While the crypto community celebrates regulatory clarity for tokens like USDC and USDT, analysts warn that stablecoins alone can’t solve all cross‑border payment challenges.

They argue that XRP’s role as a neutral “bridge asset” may become even more critical as banks seek reliable liquidity solutions.

GENIUS Act Sets Guardrails for $217 B Stablecoin Market

The GENIUS Act mandates that U.S. dollar‑backed stablecoins hold 100% reserves in liquid assets—U.S. dollars, Treasury bills, or similar instruments—and report reserve compositions monthly.

The bill covers the two largest stablecoins: Tether’s USDT ($155 billion market cap) and Circle’s USDC ($61.6 billion) . This $217 billion sector has long pushed for clear rules to boost institutional adoption.

Banks still rely on Nostro/Vostro accounts—pre‑funded fiat accounts at correspondent banks—to settle cross‑border payments.

Today, these accounts hold roughly $27 trillion worldwide. Industry experts predict this could exceed $50 trillion in coming years, as banks remain wary of each other’s stablecoins and central bank digital currencies. That caution leaves a gap for a neutral, decentralized bridge asset like XRP to fill.

Will Stablecoins Need XRP?

Stablecoins excel at holding value but not at moving it across disparate ledgers. Transferring USDC from a U.S. issuer to a partner bank in Asia typically involves multiple transfers and settlement delays.

XRP, by contrast, moves value directly between parties in seconds, with finality and minimal counterparty risk. As a result, even a fully regulated stablecoin ecosystem would still lean on XRP for liquidity in corridors where trust and speed matter most.

Ripple’s network of banking partners has expanded steadily. A diverse group of financial institutions around the world have integrated Ripple’s technology into their cross‑border payment systems.

In North America, Santander’s U.S. arm and Canada’s CIBC (Canadian Imperial Bank of Commerce) leverage Ripple. In South America, Brazil’s Itaú Unibanco and BeeTech participate, while Asia features India’s Kotak Mahindra Bank and IndusInd, Singapore’s InstaReM, China’s LianLian, and Japan’s SBI Remit.

The Middle East is represented by RAKBANK in the UAE. Europe boasts several partners, including Sweden’s SEB and the U.K.’s IFX, TransferGo, and Currencies Direct. Australia’s Airwallex rounds out the list, alongside Thailand’s Siam Commercial Bank and Krungsri.

In a recent post on X, an expert argued that banks will not trust each other’s stablecoins to settle large‑scale flows. “They need a neutral asset,” the analyst wrote. “XRP can serve as that common denominator.”

Regulatory Clarity vs. Liquidity Needs

The GENIUS Act tackles reserve transparency and issuer liability. It does not address cross‑chain liquidity. Banks still face currency‑pair mismatches and counterparty limits when moving stablecoins internationally.

XRP’s on‑demand liquidity model bypasses those hurdles by sourcing liquidity only when transactions occur. This model could gain traction as stablecoin issuers and banks digest the new rules.

The House is expected to pass the GENIUS Act in July, according to congressional aides. Once signed, stablecoin issuers will have six months to meet reserve and reporting requirements.

In parallel, Ripple continues to push for broader use of XRP as a bridge asset. Commentators say that the coexistence of stablecoins and XRP could spur innovation in cross‑border payments, lowering costs and settlement times.