Matrixport: Stablecoin liquidity contracts, funds flow into gold and silver

Foresight News reported that Matrixport stated in an article that the "GENIUS Act" is expected to prohibit stablecoin holders from receiving interest or returns. As a result, funds may shift to yield-generating alternatives such as tokenized money market funds. USDC has seen net redemptions of approximately $6.5 billion over the past six weeks, leading to a contraction in stablecoin liquidity and a weakening of short-term purchasing power in the crypto market.

Meanwhile, funds are flowing out of stablecoins and into traditional safe-haven assets such as gold and silver, further reducing the supply of stablecoins. Accordingly, Circle is shifting its focus from "market capitalization" to "transaction activity," and is promoting the real-world use and adoption of stablecoin payments through initiatives such as the Circle Payment Network and partnerships with companies like Intuit.