As digital assets are pegged to the price of a fiat currency, such as the U.S. dollar, stablecoins are often backed by reserves of cash and U.S. Treasuries that generate yield. In Coinbase’s fourth quarter, the company disclosed $224 million in revenue from assets backing USDC.
A thawing iceberg
A report published by S&P Global Ratings on Wednesday found that the GENIUS Act would increase the adoption of stablecoins in the U.S. The lack of regulation in the U.S. is “one of the main impediments” to broader adoption, the analysts wrote.