Stablecoin News – On July 7, 2025, Amundi, Europe’s largest asset manager, warned that U.S. stablecoin policies, particularly the GENIUS Act, could destabilize global payment systems, as reported by Reuters. The Act, passed in early 2025, mandates 1:1 Treasury or cash reserves for stablecoins, fueling a $200 billion liquidity surge for U.S. debt, with Tether holding $120 billion in Treasuries by March. Amundi argues that the dollar-backed stablecoin boom, led by USDT and USDC, risks creating imbalances in global finance by amplifying U.S. monetary influence.
Stablecoins now account for 74.6% of institutional OTC trading volume, per Finery Markets, with USDC’s 29-fold volume increase tied to EU’s MiCA regulations. However, Amundi cautions that the U.S.’s regulatory lead could marginalize euro-based stablecoins, like Societe Generale’s EURCV ($41.8 billion market cap), and other local currency tokens. This could disrupt cross-border payment systems, particularly in Europe and Asia, where demand for non-dollar stablecoins is growing.
A former ECB official urging Europe to back euro stablecoins to counter U.S. dominance. Amundi’s warning highlights risks of over-reliance on dollar-pegged assets, especially as stablecoin supply nears $260 billion. While the GENIUS Act fosters trust in stablecoins, it may exacerbate global financial imbalances, requiring coordinated international regulation to ensure stability.
