Stablecoins hit $900 billion remittance market, Genius Act takes effect after one year, transforming the landscape

MainnetDelayedAgain · 2026-01-21T10:55:10+00:00

The implementation of the 2025 "Genius Act" has prompted cryptocurrency companies to challenge the traditional remittance market, with stablecoin technology becoming their main advantage. Although traditional companies still hold some competitiveness, they need to integrate new technologies to cope with intensifying competition and avoid a "self-competition" scenario.

MainnetDelayedAgain

2026-01-21 10:55:10

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July 2025 “Genius Act” comes into effect, marking a new reshuffle in the remittance industry. As disruptors of the traditional remittance market, cryptocurrency companies are leveraging stablecoin technology to break the existing order of this $900 billion blue ocean market.

Competition heats up: The clash between crypto and traditional remittance has already begun

Since the Genius Act took effect, the competition between crypto startups and international remittance giants like Western Union and MoneyGram has moved from the shadows to the forefront. Nate Svensson, senior equity research analyst at Deutsche Bank, believes that although traditional remittance companies still maintain competitiveness in global regulatory frameworks and user bases, this advantage is being eroded by emerging stablecoin technology.

Stablecoin offensive: Flexibility becomes the killer feature for crypto companies

The core advantage of cryptocurrency companies lies in their ability to fully leverage the flexibility of stablecoin technology. Jessica Wachter, finance professor at Wharton School, points out that stablecoins inherently possess cross-chain, low-cost, and high-efficiency features, which are highly attractive in international remittances. In contrast, if traditional remittance companies attempt to combine stablecoins with existing fiat systems, they may fall into a paradox — needing to maintain their original business models while adapting to emerging technologies, ultimately facing an awkward situation of “competing with themselves.”

Key to market reshaping: Whoever masters stablecoins, owns the future

In the next 12 months, the outcome of this competition will largely depend on whether traditional giants can effectively integrate stablecoin technology. Crypto companies, with their native technological advantages, have already gained the upper hand, but traditional remittance companies still have room to turn around — provided they can let go of their obsession with existing profit pools and truly embrace the innovations brought by stablecoins.

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