GENIUS Act Ban May Push Trillions Into Tokenized Assets, Ex-Standard Chartered Executive Says

The newly introduced US GENIUS Act is set to reshape the stablecoin market, potentially boosting adoption while driving institutional capital toward tokenized real-world assets (RWAs).

A key provision of the legislation is its blanket ban on yield-bearing stablecoins, which prohibits holders from earning interest on their digital dollar balances. According to Will Beeson, former Standard Chartered executive and CEO of Uniform Labs, this measure could spark a massive reallocation of funds.

“With yield-bearing stablecoins off the table, institutions need a compliant way to earn yield while staying liquid,” Beeson said. “Capital is already shifting.”

He emphasized that trillions of dollars in non-interest-bearing stablecoins are poised to flow into tokenized markets, particularly US Treasurys and money market funds. The focus, he added, is moving toward programmatic access to risk-free yield and seamless transitions between cash and high-quality assets.

Beeson’s perspective is echoed by Aptos Labs’ Solomon Tesfaye, who believes the GENIUS Act will benefit tokenization as much as stablecoins.

To address this evolving demand, Uniform Labs is developing Multiliquid, an institutional liquidity platform designed for real-time conversion between stablecoins and tokenized assets. The system’s open architecture will allow compliant issuers to integrate without lengthy commercial agreements.

“We’re working with a number of leading institutions, fintechs, and stablecoin issuers ahead of our launch later this year,” Beeson confirmed.

Industry experts note that tokenization growth is expanding beyond private credit and government bonds, with potential to open traditionally restricted markets — like real estate and private equity — to a broader range of investors through fractional ownership.

As Sandra Waliczek of the World Economic Forum pointed out, tokenization could level the investing playing field, enabling access to asset classes previously available only to high-net-worth individuals.

With the GENIUS Act granting regulatory legitimacy to stablecoins, the shift toward tokenized assets may mark the next major phase in digital finance — one where yield, liquidity, and compliance drive institutional participation.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.vv