Big Tech Companies like X Considering Stablecoin Adoption

Partnerships between stablecoin infrastructure and tech companies have been on the rise as well. Among the partnerships are Mastercard‘s alliance with MoonPay and Visa’s deal with Bridge. In October 2024, Stripe announced its $1.1 billion acquisition of Bridge, which Fortune labeled the “starting gun” for people in Silicon Valley to take stablecoin technology seriously.

Paxos, a crypto company known for stablecoins, has partnered with both Stripe and PayPal to provide services. For Stripe, Paxos planned to launch a new stablecoin payments platform. Paxos is also the company supporting PayPals PYUSD stablecoin, which has a $978 million market capitalization.

GENIUS Act sparks debate in US Senate

The “Guiding and Establishing National Innovation for U.S. Stablecoins Act,” otherwise known as the GENIUS Act, is one of the developments pushing companies to explore digital assets.

The bill seeks to provide a regulatory framework for stablecoins and their issuers in the country, but has been met with debate about Big Techs potential participation in the crypto industry.

According to The New York Times, Republican Senator Josh Hawley recently said he would vote against the bill in its current form as it would allow tech companies the ability to issue digital currencies that would compete with the dollar.

Democrats plan to add an amendment that would ban Big Tech companies from creating their own stablecoins, according to the NYT, citing a person with knowledge of the plan. The move would force tech companies operating in the US to use established stablecoin companies, including Tether and Circle.