Stablecoins could help fuel the U.S. dollar’s dominance, especially as new regulations — namely the GENIUS Act in the United States — take effect, BlackRock said in a new report.

New legislation in the U.S. “cements the role of stablecoins” as a payment means, according to BlackRock, the world’s largest asset manager. The firm in particular referenced the GENIUS Act, the landmark stablecoin bill signed into law earlier this month, which is strictly focused on stablecoins as payment tools rather than investments. The GENIUS Act restricts issuers from paying interest with so-called yield-bearing stablecoins, and limits issuance to federally regulated banks, some registered nonbanks, and state-chartered firms.

“This regulation could reinforce dollar dominance by enabling a tokenized U.S. dollar-based ecosystem for international payments,” the report argues, a sentiment echoed by many industry commentators, as well as by U.S. legislators as they were considering GENIUS.

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