The financial world is at a crossroads, and whether South African businesses choose to lead or lag behind will depend on how seriously we take one undeniable truth: stablecoins are here to stay, and now they’ve got the legal scaffolding to prove it.
With the passage of the Global Enterprise and National Infrastructure for Utility Stablecoins (GENIUS) Act in the United States, stablecoins are no longer operating in regulatory limbo.
They’ve been elevated from a speculative fringe technology to a legitimate, regulated financial tool - and frankly, it’s about time.
For years, we’ve watched global treasury leaders and CFOs hesitate - and rightly so. In the absence of regulation, stablecoins were seen as high-risk, even if their potential to transform cross-border payments and liquidity management was obvious.
The GENIUS Act puts an end to that uncertainty. It introduces a comprehensive regulatory framework that prioritises security, transparency, and stability - exactly what institutional players have been waiting for.
This isn’t just some cryptocurrency cheerleading. This is a fundamental shift in the infrastructure of global finance. Stablecoins, when regulated and implemented correctly, aren’t speculative assets - they’re tools to move money faster, cheaper, and with more trust than the outdated systems most businesses still rely on.
As Craig Stoehr, General Counsel at Yellow Card, rightly pointed out: “The GENIUS Act solidifies a place for stablecoins in global financial markets… While this is a U.S. bill, its impact is global.”
He’s not wrong. This legislation sets a global precedent. Countries like South Africa, Nigeria, Kenya, and others in emerging markets should be taking notes - and fast. The GENIUS Act shows that it’s possible to legislate for innovation without compromising on compliance.
So, What Does This Mean for South African Businesses?
If your company operates across African borders, you know the pain of traditional cross-border payments - delays, excessive fees, opaque FX rates. Stablecoins offer an alternative that’s efficient and scalable. And now, with regulatory clarity in place in one of the world’s biggest financial jurisdictions, the excuse of regulatory uncertainty is no longer valid.
This is the moment for local businesses to ask the right question: Not "if" we adopt stablecoins - but "how" we do it best.
Here’s what you stand to gain:
- Lower FX and Settlement Costs: Use stablecoin-powered payment rails to bypass the expensive, slow correspondent banking system.
- Better Liquidity Management: Tap into 24/7 liquidity pools without regulatory guesswork.
- Confidence to Scale: Build treasury operations on a legally recognised, secure infrastructure.
Stablecoin experts have been preparing for this moment since day one. Our ‘regulation-first’ approach, working closely with regulators across Africa, means we’re uniquely positioned to support businesses looking to integrate stablecoin solutions with full compliance and security.
The GENIUS Act may be American in origin, but its implications are global - especially for fast-growing economies like ours. It’s time to stop seeing stablecoins as a risk and start viewing them as the competitive advantage they truly are.
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