In 2025, the U.S. congress passed an important new law known as the GENIUS Act, the first federal law regulating stablecoins and stablecoin issuers. This is good news for Higlobe customers, and for anyone who relies on stablecoins t for safe, reliable cross-border payments.

What is a stablecoin?

A stablecoin is a type of digital currency that is designed to maintain a fixed value by being tied to the value of another currency, such as the U.S. dollar.

Stablecoins combine all the advantages of a digital currency, such as 24/7 transferability, without the risk of dramatic price fluctuations that normal digital currencies can experience. Because their value is fixed, stablecoins are extremely useful for making or receiving payments. The safest stablecoins are those that are redeemable at any time for real fiat currency, and are backed by actual fiat reserves. This is how USDC works, which is the stablecoin used by Higlobe.

A holder of a USDC coin can exchange it at any time for an actual US dollar. And Circle, the issuer of USDC, maintains a reserve of dollars to satisfy any redemption requests. In fact, Circle promises that it will at all times maintain one dollar in its reserves for each USDC coin that is in circulation.

Why stablecoins regulations matter

Until recently, stablecoin issuers or stablecoins were not regulated by any government agency. Consumers had to do their own research to ensure a stablecoin was safe, as  not all stablecoins were well designed, or maintained the same level or type reserves.

The GENIUS Act Explained

The GENIUS Act (Guaranteeing Essential National Infrastructure in US-Stablecoins) changes all that.

Stablecoin issuers may now apply for a license from from the  U.S. Office of the Controller of the Currency, which is one of the main federal banking regulators. To obtain a license, issuers must meet strict requirements to ensure their stablecoins remain fully redeemable for fiat currency. To do that, the GENIUS Act requires the following:

Key requirements under the GENIUS Act

• Reserve Requirement: Licensed stablecoin issuers must hold reserves equal to 100% of the value of the stablecoins they issue.
• Reserve Composition: The reserves that regulated stablecoin issuers hold must be composed of actual US dollars, or by securities that are readily and easily convertible into US dollars, such as Treasury securities.
• Monthly Reporting: Regulated payment stablecoinissuers are required to issue monthly reports showing the amount and make up of their reserves.
• Annual Audits: Issuers of regulated payment stablecoins are required to have their financial statements audited by a registered public accounting firm no less than annually.

The GENIUS Act does other things to make regulated payment stablecoins safe to use. For example, stablecoins issuers like Circle must comply with US anti-money laundering laws.

Why this matters for Higlobe users

Higlobe has always relied on the stablecoin that we felt was the safest and most reliable USDC. Now, thanks to the GENIUS Act, you don’t have to take only our word for it. Circle, the issuer of USDC, is in the process of obtaining a  license under the GENIUS Act. Once this license is granted, both Circle and USDC will be regulated by the U.S. government. This means every Higlobe transaction will be powered by a fully regulated stablecoin.

Ready to experience safer, faster cross-border payments with fully regulated stablecoins?

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