TechFlow News, May 09: Alex Thorn (@intangiblecoins), Head of Research at Galaxy Research, published a post revealing that Galaxy Research has released a new report refuting the banking industry’s claim that the GENIUS Act will undermine U.S. bank deposits, and providing quantitative estimates.
Key findings from the report are as follows: Under the GENIUS Act framework, 60% to 70% of the incremental stablecoin supply will originate offshore, with inflows of foreign deposits approximately double the volume of domestic deposit migration—indicating a net addition rather than a zero-sum transfer of existing deposits; each newly minted GENIUS stablecoin generates approximately $0.32 in net credit for the U.S. economy; under the base-case scenario, total credit expansion by 2030 is projected at roughly $400 billion, rising to $1.2 trillion under the optimistic scenario; additionally, short-end U.S. Treasury yields (T-bills) will compress by 3–5 basis points, potentially saving taxpayers up to $3 billion annually in borrowing costs. The report also notes that the interest pass-through mechanism does not pose an existential threat to U.S. banks—it merely represents a reallocation of profit margins and will not reduce overall credit capacity.
