Wall Street banking giants join forces to explore stablecoin projects, Arthur Hayes: "Goodbye Circle"

Gate News bot message, according to CoinGape, as the U.S. Senate votes to advance the stablecoin bill (also known as the "GENIUS Act"), Wall Street banking giants have begun to explore stablecoin businesses. Crypto Assets market veteran Arthur Hayes believes this could pose a significant threat to existing stablecoin market leaders like Circle (USDC) and Tether (USDT). Hayes bluntly stated regarding this development: "Goodbye Circle. Thanks for playing."

The latest report from The Wall Street Journal indicates that top Wall Street banks such as Wells Fargo, Bank of America, JPMorgan Chase, and Citigroup are evaluating the collaboration to develop stablecoin projects. With the GENIUS Act entering the voting stage in the U.S. Senate, commercial banks have started to prepare for the next major opportunity in the stablecoin market. These developments have triggered market unease, especially regarding Circle's USDC, which slightly de-pegged earlier today, temporarily dropping to $0.9987.

Hayes and other industry insiders believe that this stablecoin project may threaten the survival of USDC. Interestingly, this development coincides with reports that Circle is allegedly in talks to sell to crypto giants like Ripple.

Market analysts believe that these giants are interested in Circle's user base, on-chain application integration, and extensive liquidity, while the true value of USDC lies entirely in its on-chain influence in the DeFi space.

As large tech companies and retail investors enter the stablecoin market, Wall Street banks now must adapt to market demands, or they will face risks. Failing to shift towards digital assets could mean that the foundations of payments and deposits are shaken. Coincidentally, Société Générale plans to launch a dollar stablecoin on the Ethereum blockchain.

Despite large banks attempting to cope with the increasingly fierce competition from the encryption field, this initiative is still in the conceptual stage, as it largely depends on the upcoming legislation, including the "GENIUS Act."

The bill outlines a framework for banks and non-bank institutions to issue stablecoins, while restricting publicly listed companies outside the financial industry. Keen banks have also seen the opportunity to use stablecoins for faster and more economical payments, especially in cross-border transactions.

In addition, according to CNBC, US President Trump's crypto advisor David Sacks also stated that if the "GENIUS Act" is passed, it will release "trillions of dollars" in demand for US Treasury bonds. The bill has already cleared the procedural voting threshold in the Senate. Sacks said the bill will provide a legal framework for the $200 billion unregulated stablecoin market and strengthen the dominance of the US dollar.