US stablecoin law ignites international momentum
Israel and other countries explore stablecoin launches as investor and institutional interest surges.
U.S. President Donald Trump has recently provided a boost to digital currencies. On July 18, he signed the "GENIUS Act" (Guiding and Establishing National Innovation for U.S. Stablecoins). This is the first major federal law regulating the digital currency market in the U.S.
One of the most significant aspects of the law is the regulation of stablecoins: it creates a first-of-its-kind regulatory framework for cryptocurrencies pegged to the value of another asset, such as the U.S. dollar.
The law requires stablecoin issuers to maintain full (100%) backing in liquid assets, such as U.S. dollars or short-term government bonds. It also requires issuers to publish monthly reports detailing the composition of the backing.
It should be noted that the world of digital currencies, and stablecoins in particular, is still imperfect. For example, it is not always clear whether all stablecoins are fully backed. There is also regulatory risk, as governments and central banks may view stablecoins as a threat to the official monetary system and impose restrictions. Additionally, issuance is concentrated in private companies rather than decentralized networks. The fear is that if a major stablecoin loses trust or decouples from its pegged asset, it could destabilize the entire crypto market. The collapse of the Terra stablecoin in 2022, which caused many investors to lose their holdings, remains a cautionary example.
A notable success story in the space is Tether, whose demand has surged over the past year due to a combination of commercial usage and large inflows of new USDT.
"By the end of the year there will be a stablecoin launched in Israel"
The realization that federal regulation is underway has contributed to significant global growth in stablecoin users, rising from 20 million in 2024 to approximately 30 million in 2025.
In Israel, activity in the field is beginning to emerge. The most active company is Bits of Gold. CEO Yuval Roash explains: "About two years ago, we approached the Capital Market Authority to announce our intention to issue a stablecoin. Like any currency, for every shekel issued, we will issue one BILS token, our chosen name. The currency is currently in an advanced pilot phase. I estimate that by the end of the year, a stablecoin will be officially launched in Israel."
Roash adds, "It can be used to convert Bitcoin into BILS and from there to shekels. This allows Israelis to maintain a position in shekels in their wallets while retaining the benefits of blockchain and Bitcoin ownership."
Israeli unicorn Fireblocks is a key player in the stablecoin technology sector, projecting that transaction volume on its platform will exceed $10 trillion by 2025. Stablecoins currently account for roughly $2 trillion, about half of all transactions this year. Another active Israeli company, Utila, recently raised $22 million in an expansion round, bringing total funding to $40 million.
Utila’s platform provides financial institutions and businesses with infrastructure to manage stablecoins, including token issuance, asset custody, reconciliation, and regulatory monitoring. Over 200 institutions globally use the system, with total secured transactions exceeding $60 billion and monthly usage surpassing $12 billion.
According to Idan Ofrat, co-founder and CPO at Fireblocks: "The stablecoin revolution has shifted from a theoretical idea to a global infrastructure transforming payments and international transfers. Our Fireblocks Network for Payments connects banks, payment companies, fintechs, and blockchains into a single, secure, and regulatory-compliant system. Today, every major bank or payment company is expanding its infrastructure to support stablecoins. Federal legislation in the U.S., the GENIUS Act, alongside similar moves in Europe, is providing unprecedented momentum and marking the transition to institutional adoption. Over 300 payment companies already operate on the Fireblocks platform, transferring trillions of dollars annually in stablecoins."
"Good for digital nomads"
Eynat Guez, CEO of Papaya Global, says: "Papaya enables employees and suppliers to hold funds in stablecoins in dedicated digital wallets provided by their employers or clients. This is especially advantageous in South American and Asian countries, where digital currencies are used due to currency gaps. It also provides an alternative to local bank accounts, allowing more people to be 'unbanked and multi-wallet.' Stablecoins enable faster global transfers, unaffected by bank hours or currency conversion delays."
Ofrat adds: "This revolution extends beyond the private sector: governments are also joining in. Wyoming recently became the first U.S. state to launch an official stablecoin, choosing us as their infrastructure provider. In Israel, the potential is clear: half a million Israelis hold digital assets, and over 160 crypto and blockchain companies employ thousands while serving hundreds of thousands of users. To leverage this advantage, Israel must implement supportive regulation and official recognition to position itself at the forefront of the next financial revolution."
