By 
The Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act has fundamentally altered the economics of issuing digital dollars. By explicitly prohibiting stablecoin issuers from paying yield or interest to stablecoin holders, the Act effectively shut down the primary, high-profit revenue source for many early-stage firms. This single rule has triggered a massive, necessary shift in the stablecoin issuer business model, forcing companies to replace passive income from reserve assets with active revenue generation through services.
Historically, the core revenue model was simple. Issuers invested the reserve funds (U.S. Treasuries, bank deposits) and kept the interest generated. This passive yield was substantial, particularly as interest rates rose. The GENIUS Act, however, strictly mandates that reserve profits must remain entirely separate from the issuer’s operating revenue, ensuring they benefit only the stability of the stablecoin itself. This has pushed the entire industry to rebuild its economic engine around transaction-based and value-added services.
Issuers are now pivoting to three core revenue streams. The first is transaction fees. Companies are exploring models that charge fractional fees for complex on-chain or cross-chain transfers, acting as the settlement layer for large institutional movements of funds. They are transforming from simple liability holders into sophisticated payment processors.
The second area is custody and ancillary services. By offering secure, regulated custody solutions for their own stablecoins and potentially other digital assets, issuers can generate fee income. They are positioning themselves as trusted partners for large institutions, handling compliance, specialized on-chain governance, and audit trails—all of which are high-value services that fit squarely within the stablecoin issuer business model defined by the GENIUS Act.
Finally, the focus is shifting to value-added infrastructure. Issuers are building API layers and enterprise tools that allow businesses to easily integrate stablecoin payments into their existing ERP or e-commerce systems. They are selling the infrastructure, speed, and efficiency of their blockchain network, rather than the stability of the token itself. This B2B focus generates licensing and usage fees. This strategic pivot ensures compliance with the GENIUS Act while demonstrating the enduring utility and innovative capacity of the US stablecoin industry. This new reality is much healthier, built on active service provision rather than passive yield, promising more sustainable growth.
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