“stablecoins will attract capital to the US.”

According to a study carried out by the research division of the firm Galaxy Digital, the GENIUS Act to regulate stablecoins, far from causing a destructive flight of deposits, will generate a net import of capital into the US financial system, expanding available credit and strengthening the dominance of the dollar globally.

The report released on May 7, titled “The GENIUS Law and the evolving structure of dollar finance,” notes that between 60% and 70% of stablecoin growth under the new regulatory framework will come from sources offshore (outside the United States). This means that for every dollar that migrates from US bank deposits, approximately two dollars will enter from abroad.

As a result, instead of the contraction in deposits that banks warn about, a reallocation will occur with a positive balance for the US banking system. Furthermore, each additional dollar in stablecoins would generate around 32 cents of net credit in the US economy.

This is one of the most relevant findings of the report, as it ensures that the supposed “leak of deposits” will not only be compensated by flows offshorebut it will generate an additional effect accelerated dollarization at a global level.

In that sense, Galaxy Research points out that as long as maintaining credit in dollars remains as simple as downloading an application, domestic deposits in vulnerable jurisdictions “will become nervous,” as this strengthens the US dollar system at the expense of local banking systems in countries with weak institutions, low monetary credibility or capital controls.

Seen in this way, in the opinion of Galaxy researchers, what stablecoins regulated under the GENIUS Law are doing is accelerate capital flight from countries with fragile currencies or weak institutions, towards the US financial system.

The result is that, while some local banks outside the US lose deposits, the dollar strengthens structurally as a global store of value. With this, “the United States financial system will import more net liquidity.”

Projections are favorable for the US (and the world)

The study also makes a series of projections. According to the scenarios that Galaxy manages, with a moderate growth of stablecoins (reaching about 1.5 trillion dollars of total supply in 2030), the US financial system. would generate an extra 400 billion dollars in lending and investment capacity.

Another positive possibility is that, if there is a much more aggressive adoption (especially international), the supply of stablecoins would reach 3.3 trillion dollars. This would generate Additional $1.2 trillion of credit in the American economy.

A structural increase in demand for T-bills (short-term Treasury bills), which could compress their yields by 3 to 5 basis points, generating an estimated savings of up to $3 billion a year for the American taxpayer.

Both scenarios have important implications, with profound repercussions both for the financial dynamics of the United States as for the world:

• For the US: strengthens the dollar system by attracting global capital into regulated and safe reserves. It reduces the cost of government financing and partially mitigates concerns about deposit outflows, although it will put pressure on traditional banks’ intermediation margins.
• Globally: Accelerate the migration of deposits from countries with fragile currencies or capital controls to regulated US stablecoins. This reinforces the dominance of the dollar in the digital economy and positions stablecoins as a more efficient and accessible financial infrastructure than legacy systems.

The accusations of US banks against regulation are thus questioned approved in July 2025which is in the process of regulation. As Criptonoticias has reported, the lobbies Banking authorities continue to warn about possible systemic risks. Hence, the Galaxy report comes at a time of active debate on the implementation of GENIUS.

Galaxy Research directly challenges the dominant narrative of traditional banking by stating that “banks are wrong about stablecoins.” Instead of a threat, for researchers the regulated growth of these assets represents a strategic opportunity for the United States.