Multicoin Executive: The GENIUS Act Will End Banks’ Exploitation of Depositors with Low Interest Rates

PANews, October 6—Tushar Jain, Managing Partner at Multicoin Capital, predicts that the introduction of the GENIUS Act will trigger a competitive transformation in the retail banking industry, completely ending the traditional banks’ “exploitation” of depositors by paying meager interest. He believes that major tech companies such as Meta, Google, and Apple will leverage their vast distribution networks to launch stablecoin products offering higher yields, embedding features like instant settlement, 24/7 payments, and free transfers, thereby directly challenging the retail deposit market of traditional banks. Although the banking industry is actively lobbying to prevent stablecoin platforms from offering competitive yields, Jain points out that regulations prohibiting the payment of interest to stablecoin holders are “easily circumvented,” and that depositors “deserve returns closer to market rates.” Currently, the average interest rate on U.S. savings deposits is only 0.40%, with trillions of dollars in deposits even earning zero interest, highlighting the necessity for new competition.