“Full-Reserve Dollars” Are Reshaping Finance—The Trinity Strategy of USDC, the GENIUS Act, and Arc
In the United States, the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act) has been enacted, bringing U.S. dollar-pegged stablecoins into a comprehensive federal framework for the first time. In June, USDC issuer Circle (NYSE: CRCL) went public, making the “internetization” of payments and capital markets a reality. Are stablecoins truly the future of digital currency? Focusing on the arguments of Circle’s Jeremy Allaire and the latest trends, we will organize this from three perspectives: institutional, technical, and business.
1. What “Open Internet Money” Brings
Stablecoins on the blockchain are digital dollars that transcend “walled garden networks” like banks and card networks, enabling 24/7/365 instant (continuous) settlement. In commerce, in particular, Shopify and Stripe have begun accepting USDC, highlighting the reduction of fees and settlement time burdens. “Internet-speed fund transfers” for cross-border payments, B2B small-amount remittances, and in-game micro-payments are becoming a reality.
1-1. Bringing “Stock Market Norms” to Money
Crypto assets are designed from the ground up for markets that are always open and offer instant settlement. If USDC, a digital representation of fiat currency, moves on the same rails, the time lag between investment, payment, and settlement will be minimized, changing the premises of cash flow and working capital management. The moves by Stripe and card networks are a manifestation of that “on-the-ground demand.”
2. Establishing Regulation—The Key Points of the GENIUS Act in 3 Lines
Definitions and Licensing: Defining payment stablecoins and the criteria for “permitted issuers” under federal law. It also clarifies the framework for judgment regarding the provision of foreign issuers within the U.S., based on AML/BSA compliance.
Investor and Consumer Protection: Marketing discipline, such as a “prohibition on interest payments and yield offerings” and a ban on misleading representations (e.g., advertising as if it were federally guaranteed or legal tender).
Implementation Phase: The stage where the Treasury Department collects information on privacy, cyber, and cost impacts of related tools via RFI to refine practical rules.
Point: Moving from “anything goes” to “common rules everyone understands.” This will accelerate full-scale adoption by banks, exchanges, and card networks.
3. The Source of Trust—USDC Reserve Assets and Disclosure
USDC is always 100% reserved. Approximately 90% is held in highly liquid assets such as short-term U.S. Treasuries and overnight repos, incorporated into the BlackRock-managed Circle Reserve Fund (USDXX). Monthly attestations and disclosure of holdings are also ongoing. This is a full-reserve design, distinct from “bank deposits = leveraged IOUs.”
3-1. Transparency is a Prerequisite for “Adoption”
Even after going public, Circle continues to strengthen the operational reality and risk management of its reserve assets. Attention is also focused on its relationship with U.S. Treasury demand. Combined with regulatory clarity, this is boosting institutional investor acceptance.
4. Updating the Industry Map—IPO and Full-Scale Entry of Mega-Corporations
Circle listed on the NYSE (CRCL) on June 5, 2025. Even after a successful IPO, while quarterly earnings were driven by growth in USDC circulation and reserve revenue, losses were also recorded due to IPO-related non-cash expenses. The market is evaluating this as regulatory establishment leading to expanded adoption.
4-1. The Critical Point of Commerce × Stablecoins
Shopify offers USDC payments on Base, and has hinted at expanding coverage within the year. If this spreads, ripple effects such as “diminishing card fees,” “instant cross-border settlement,” and “rethinking chargeback design” will become realistic.
5. Misunderstandings and Risks—A Calm “Practical Perspective”
Not a “Substitute for Bank Deposits”: While USDC is a full-reserve design, it is not subject to deposit insurance. Vulnerabilities in custody, private key management, and smart contracts remain as implementation risks.
"Yield" is a Forbidden Move: The GENIUS Act prohibits interest payments by issuers. Designing yield-bearing products requires organizing applicable laws and qualified investor requirements outside of the issuer (e.g., brokers).
Regulatory Implementation Details are Yet to Come: Standardization of operations is underway, including identity verification, wallet risk assessment, and market conditions for repos and short-term U.S. Treasury bonds.
6. The Next Frontier—"Programmable Money" and Arc
Allaire emphasizes the spread of "conditional money" via smart contracts. Circle has announced the L1 chain "Arc," which aims to become the foundation for payments, FX, and capital markets with specifications tailored to "financial practice requirements," such as EVM compatibility, sub-second finality, and PoA. This serves as a stepping stone to expand the automated execution of contracts—such as bills, credit, collateral, and dividends—based on a world where "apps handle money directly."
Conclusion
Stablecoins are shifting their focus from "vessels for speculation" to "internet-standard payment money." Now that rules (GENIUS), transparency (full-reserve), and real demand (Shopify/Stripe) have begun to function as a trinity, the remaining issue is "at which layer and who will take the standard." Circle's IPO, Arc, and the entry of card networks and platforms are the signals for that battle for hegemony.
