The U.S. Senate passed the GENIUS Act on June 17, establishing a federal-level legal framework for the issuance and use of stablecoins—a move that has ignited investor interest and driven related stocks sharply higher. With this landmark legislation now moving to the House for review, and expected to be signed into law by President Trump, the spotlight is firmly on stablecoins: what they are, how they work, and whether it's still possible to benefit from this emerging trend.
For investors seeking exposure to the rapidly evolving digital finance ecosystem, 00909 (GTM Digital Payment Services ETF) stands out as Taiwan’s only ETF focused on cryptocurrencies, blockchain technology, and digital payment systems. Backed by growing regulatory clarity and expanding real-world applications, stablecoins are poised to become foundational infrastructure in the future of global finance.
What Are Stablecoins?
Stablecoins were first introduced in 2014 to address one of the biggest challenges in the cryptocurrency world: extreme price volatility. Early digital assets like Bitcoin often saw daily swings exceeding 90%, making them impractical for everyday transactions or value storage.
Stablecoins solve this problem by being pegged 1:1 to stable fiat currencies, such as the U.S. dollar. This backing ensures price stability while retaining the core advantages of blockchain—fast transfers, low fees, and borderless accessibility. As a result, stablecoins have become the go-to tool for storing value on-chain and facilitating seamless crypto transactions.
Unlike speculative cryptocurrencies, stablecoins function more like digital cash—offering utility rather than investment returns.
The GENIUS Act: A Regulatory Breakthrough
The recently passed GENIUS Act marks a pivotal moment for the stablecoin industry. It mandates that:
- All stablecoins must be fully backed by cash and short-term U.S. Treasury securities.
- Issuers must publish monthly reserve reports to ensure transparency.
- Projects with a market cap exceeding $50 billion require annual audits.
- Only authorized payment institutions can issue stablecoins in the U.S.
- Strict KYC (Know Your Customer) and anti-money laundering (AML) rules apply.
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This regulatory clarity not only boosts investor confidence but also legitimizes stablecoins as part of the mainstream financial system. By setting high standards for solvency and compliance, the Act paves the way for broader adoption across banking, payments, and asset management.
Real-World Applications Beyond Speculation
While many still associate cryptocurrencies with trading and speculation, stablecoins are increasingly being used for practical purposes:
1. Cross-Border Payments
Traditional international wire transfers via SWIFT can take 3–5 business days and involve high fees. In contrast, stablecoin transfers settle in seconds, at a fraction of the cost. Imagine sending money from Taiwan to Brazil instantly—without needing a local bank account or paying exorbitant fees.
2. Asset Tokenization (RWA)
One of the most promising frontiers is real-world asset (RWA) tokenization, where physical assets like real estate, bonds, or equities are represented as digital tokens on a blockchain. Stablecoins serve as the medium of exchange in these ecosystems, enabling fractional ownership and global access to previously illiquid markets.
Analysts project that the RWA market could grow tenfold within five years, with stablecoins playing a central role in settlement and liquidity provision.
Circle & USDC: A Case Study in Growth
A prime example of stablecoin success is Circle, the issuer of USDC (USD Coin)—one of the largest regulated stablecoins globally. Since its IPO on June 5 at $31 per share, Circle’s stock surged to $240.28 by June 20—an increase of 675% in just two weeks.
Circle’s growth is fueled by strategic partnerships:
- Co-founded USDC with Coinbase, the largest U.S. crypto exchange.
- Collaborating with Visa and Mastercard to integrate USDC into traditional payment rails.
- Expanding into Japan through a joint venture with financial giant SBI Holdings.
As demand for stablecoin infrastructure grows, companies like Coinbase—not just issuers but also key distribution platforms—stand to benefit significantly. Coinbase earns up to 50% of revenue from USDC-related services, creating a powerful recurring income stream.
How 00909 Captures the Stablecoin Ecosystem
The GTM Digital Payment Services ETF (00909) offers diversified exposure to this high-growth ecosystem. Its portfolio includes key players such as:
- Coinbase – Leading crypto exchange and USDC partner
- Visa & Mastercard – Bridging traditional finance with digital payments
- SBI Holdings – Driving blockchain adoption in Asia
These firms are not peripheral players—they form the backbone of the next-generation financial infrastructure. As regulatory frameworks like the GENIUS Act take effect, their roles in compliance, payment processing, and cross-border settlement will only expand.
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According to fund manager Yang Ting-Jie, "00909 is uniquely positioned to capture the long-term growth potential of blockchain-based financial services. With stablecoins gaining legitimacy and use cases multiplying, now is a strategic time to consider exposure."
FAQ: Your Stablecoin Questions Answered
Q: Are stablecoins safe?
A: Regulated stablecoins like USDC are among the safest crypto assets because they are fully backed by reserves and subject to regular audits. However, always verify the issuer’s transparency and compliance status.
Q: Can I earn yield on stablecoins?
A: Yes—many platforms offer interest-bearing accounts or lending opportunities using stablecoins. Returns vary based on risk, platform credibility, and market conditions.
Q: Is investing in 00909 risky?
A: Like any equity ETF, 00909 carries market risk. However, its diversified exposure to established fintech leaders helps mitigate single-stock volatility while offering growth potential.
Q: How does regulation affect stablecoin value?
A: Clear regulations enhance trust and adoption. The GENIUS Act strengthens stability by requiring full reserve backing, reducing the risk of de-pegging events.
Q: Can stablecoins replace traditional banking?
A: Not entirely—but they’re transforming specific functions like remittances, settlements, and programmable money. They complement traditional systems rather than replacing them outright.
Q: Will more countries adopt stablecoin laws?
A: Yes—regulatory momentum is building worldwide. The U.S. framework could inspire similar legislation in Europe, Asia, and Latin America.
Final Thoughts: Positioning for the Future
Stablecoins are no longer niche tools for crypto traders—they’re evolving into essential components of modern finance. From instant cross-border payments to tokenized real estate, their applications are expanding rapidly.
With supportive legislation like the GENIUS Act providing much-needed clarity, institutional participation is accelerating. For investors in Taiwan, 00909 offers a convenient, diversified gateway into this transformation—backed by some of the world’s most influential fintech companies.
As blockchain reshapes how we move and manage money, early adopters who understand these shifts stand to gain the most.
👉 Stay ahead of the curve—explore next-gen financial tools today