The Stablecoin Shift: What the GENIUS Act Means for Wisconsin Banks
By Elizabeth Fenton
The conversation around digital assets has long been dominated by speculation and hype, and, until recently, stablecoins have existed largely on the periphery of traditional finance. President Donald Trump signed the GENIUS Act into law on July 18th, 2025, which brought this asset into a formal framework. The policy establishes clear rules for issuance, reserves, and reporting — and, for the first time, creates a regulated bridge between decentralized finance (DeFi) and the banking sector.
FIS — a global leader in financial technology — has partnered with Circle, the issuer of U.S. dollar-backed USDC stablecoin, to integrate stablecoin usage into FIS’s Money Movement Hub. The collaboration gives banks the option to participate in this new payment system while also maintaining their existing infrastructure.
For this article, WBA spoke with John Omahen, vice president of product management at FIS, to unpack what this shift means for Wisconsin bankers. Omahen, a veteran in capital markets technology and a key player in the FIS/Circle partnership, has been at the forefront of integrating crypto technology into traditional financial systems. “Whether you love it or hate it, it’s happening,” Omahen says. “It’s better to stay informed, educated, and prepared for what that change will ultimately bring to your business.”
Stablecoin as a Mainstream Payment Rail
Stablecoins are a digital token pegged to an asset, like the U.S. dollar, and backed by audited reserves. Omahen first began working with digital assets in 2020 when stablecoins were a niche tool mostly used to facilitate crypto trades. Just five years later, payment stablecoins offer something more powerful: the ability to settle both an asset and its payment simultaneously on a blockchain.
“That’s revolutionary,” Omahen explains. “It means settlement finality on both sides, automated and insured. The velocity of money has a new speed limit — and its much faster.”
GENIUS Act: Establishing a Regulatory Framework
The implications of the GENIUS Act are far-reaching for Wisconsin banks. The law allows eligible institutions to issue their own stablecoins, act as custodians for stablecoin issuers, and facilitate transactions. The legislation also reinforces safeguards, such as one-to-one reserve requirements and prohibition on paying interest to avoid the risks of unregulated digital assets. These guidelines serve as a critical first step for banks, Omahen says.
“In the short term, it makes it easier for banks to access markets and networks that were largely developed by the crypto trading world,” he says. “It’s now simpler for banks to engage with DeFi, and for DeFi to engage with banks.”
Omahen stresses that GENIUS Act’s audit requirements and reserve rules create an ecosystem of trust that was previously lacking. “We like predictability and auditability,” he explains. “Now we can trust that the issuer of a stablecoin actually has the funds to back it up.”
Stablecoin as a Tool for Wisconsin Banks
Community bankers have expressed concerns that stablecoins could drain deposits. Omahen acknowledges that stablecoin held off-balance-sheet can’t be used to lend — but he sees more promising possibility in the long run.
“I would challenge the idea that stablecoin is just an exit for deposits,” he emphasizes. “It could just as easily bring you new deposits as it could remove them.”
Stablecoin’s offers benefits in the near-term, like faster, lower-cost transactions, particularly across borders. He explains that economic growth is fueled by international business-to-business and business-to-consumer transactions.
“In some ways, this is bringing what was possible at the top end of the market down to a wider audience,” he says. “Faster payments mean more deals can be made. More business, more hiring — it’s a macroeconomic positive.”
Looking Ahead: Bringing Stablecoin into Bank Territory
The GENIUS Act opens the door for banks to offer custody services for stablecoins, a corner of the market that Omahen believes will become strategically important. Community banks could offer safe storage, extend lending against digital currency, issue their own stablecoins and even tokenize bank deposits to open the door to new customer bases.
“This generally involves a younger demographic,” he notes, “one that may not have a mortgage today but will be the recipient of the largest intergenerational transfer of wealth in history.”
Omahen’s work with the FIS/Circle partnership aims to make stablecoin adoption seamless for banks. By integrating Circle’s USDC stablecoin into FIS’s Money Movement Hub, banks can offer their costumers a different payment rail option without overhauling their existing operations.
“It’s a premium add-on,” Omahen explains. “The design fits within a process that bankers already understand. Whether a payment goes through USDC, Tether, or something else, you’re still doing your fraud checks, compliance checks, and ledger adjustments.”
In simpler terms: Stablecoin becomes “just another payment option” within a bank’s already established workflow. For community banks, the question is less about whether stablecoin will become relevant, and more about how to be prepared when customers start asking about it.
Fenton is WBA Communications Coordinator
