Stable News: Genius Act, Moonpay and Paypal

Lumx is pleased to present Stable News, the newsletter written by our Co-Founder and CEO, Caio Barbosa, now also being replicated on our blog to become your new source of weekly information and insights on stablecoins and the digital financial ecosystem.

In this edition, stablecoins are in the spotlight on the global stage, driven by regulatory advances, increased adoption, and debates about their role in the future of finance. In recent weeks, the market has witnessed an avalanche of news showing how these digital assets are shaping the present – and what’s to come in the next few months. Here are the highlights.

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U.S. Senate Advances the GENIUS Act

In the last edition, we covered the Crypto Summit at the White House and the initial discussions that took shape there. Now, on March 13th, the U.S. Senate took a concrete step: the Banking Committee approved the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins) by 18 votes to 6. The proposal, which moves on to a plenary vote, could become the first federal regulatory landmark for stablecoins in the U.S. What does this bring?

✅ Clarity for issuers: Companies with up to $10 billion in stablecoins will operate under state supervision; larger companies will be overseen by the Federal Reserve.
✅ Focus on the dollar: The law reinforces stablecoins as an extension of the global dominance of the U.S. dollar, aligning with the vision of Treasury Secretary Scott Bessent.
✅ Support and resistance: Despite opposition from figures like Elizabeth Warren, concerned about consumer risks, the bipartisan support indicates a promising advance.

If passed, this legislation could accelerate the integration of stablecoins into the traditional financial system, with global ramifications – including in Latin America, where adoption is already robust.

Growth in Stablecoin Supply

According to Glassnode, the global supply of stablecoins has grown by 10% since January, reaching $205 billion as of March 14th. In the last week alone, $20 billion was injected into the market. Why does this matter?

✅ Sign of confidence: Analysts at Cointelegraph point out that this surge reflects optimism and an influx of capital, even amidst crypto volatility.
✅ Buying pressure: Historically, an increase in stablecoin supply precedes rises in Bitcoin – something to watch during the FOMC meeting on March 19th.
✅ USDT leadership: Tether leads with $142 billion in capitalization, but USDC is gaining momentum with regulatory backing.

This growth solidifies stablecoins as a crucial bridge between fiat and digital currencies, paving the way for a positive outlook in 2025.

MoonPay Acquires Iron: Competition on the Horizon

On March 13th, MoonPay, a giant in crypto payments, acquired Iron, a stablecoin infrastructure startup via API, for about $100 million. The goal? To compete with players like Stripe in the digital transactions market. What does this mean?

✅ Business expansion: Companies now have tools to integrate stablecoins for fast and cost-effective payments.
✅ Bet on efficiency: Iron brings an API-first approach, simplifying adoption by fintechs and banks.
✅ Second move: This is MoonPay’s second acquisition in 2025, following its purchase of Helio in January, signaling a race for dominance in the sector.

The acquisition comes shortly after Stripe’s $1.1 billion purchase of Bridge Network in October 2024 – the largest crypto transaction on record. Bridge enables companies to accept stablecoins without directly handling tokens, serving clients like Coinbase and SpaceX. While Stripe aims to expand its dominance in traditional payments to the stablecoin universe with an integrated approach into the legacy system, MoonPay is betting on crypto-native, more agile, and specialized solutions. This competition reflects an intense battle for leadership in an ever-growing market, bringing more options and innovation to the global use of stablecoins.

PayPal Accelerates with PYUSD

On March 17th, PayPal announced the expansion of its stablecoin PYUSD for international payments, now on high-performance networks. The goal? To make cross-border transactions faster and more accessible. Some highlights:

✅ Mainstream adoption: One of the world’s largest payment platforms reinforces stablecoins as the future of digital finance.
✅ Scalability: PYUSD leverages high-capacity networks to support a growing volume of transactions, with low costs and global reach.
✅ Competition: The move pressures rivals like Stripe and Visa to accelerate their stablecoin solutions.

This initiative shows how stablecoins are gaining traction among industry giants, increasing their relevance in daily financial activities.

Binance Receives $2 Billion in Stablecoins

Binance, the world’s largest crypto exchange, recently announced a $2 billion investment from MGX, the sovereign wealth fund of Abu Dhabi, paid entirely in stablecoins. This is the largest funding deal ever seen in a crypto company. What does this bring?

✅ Institutional milestone: The first time Binance has received funding from an institutional investor, signaling confidence in stablecoins.
✅ Impressive volume: Using stablecoins for such a deal shows liquidity and acceptance in billion-dollar transactions.
✅ Focus on compliance: Binance plans to use part of the capital to strengthen its global regulatory infrastructure.

This deal underscores the growing power of stablecoins as a bridge between traditional finance and crypto, using the technology as a mediator to reach these spaces.

Lumx X Inter

Last week, the Lumx team, including our Head of Institutional Sales & Public Affairs, Nathaly Diniz, and our Co-Founder and CEO, Caio Barbosa, visited Inter, presenting to leaders and collaborators how stablecoins are expanding possibilities in the payments sector and positioning themselves as allies – not competitors – to traditional systems. It was a meaningful exchange, with space for clarifying doubts and sharing knowledge. For more details about this type of event, click here.

A Look into the Future

More than just reporting the transformations in the world of stablecoins, Lumx is dedicated to experiencing and sharing them. Stable News was born with the commitment to bring the latest updates and perspectives on this evolving ecosystem, connecting the present to the financial future.

We thank you for joining us on this journey.

Stay tuned for more editions.