GENIUS ACT and Beyond: Kaia Explains Asian Perspective

With the current passing of the GENIUS Act, a landmark US regulation for stablecoins, international consideration has intensified. To debate the rising stablecoin panorama in Asia, BeInCrypto sat down with Dr. Sam Website positioning, Chairman of Kaia. As considered one of Asia’s main crypto platforms, Kaia is on the forefront of shaping regional stablecoin methods.

Stablecoins Take the Highlight in Asia

President Donald Trump has signed the GENIUS Act, the primary US federal legislation governing stablecoins, simply sooner or later after it cleared the Home. The landmark laws requires one-to-one reserves, common audits, and limits issuance to licensed banks, credit score unions, and sure accredited non-banks, whereas banning algorithmic or unbacked cash.

The transfer has already triggered a wave of company curiosity. Inside weeks, main US retailers corresponding to Amazon and Walmart started exploring proprietary stablecoins to chop card-network charges, velocity settlement, and combine loyalty applications. Supporters see this as a step toward mainstream adoption; critics warn it might pull deposits from conventional banks and drive them to speed up digital-currency methods.

The timing comes because the US greenback faces its sharpest first-half drop since 1973, prompting European buyers to show to euro-denominated buying and selling and euro-pegged stablecoins to cut back FX threat. Whereas the greenback stays dominant, the regulatory readability of the GENIUS Act might strengthen its place in crypto simply as Asia weighs learn how to profit from USD-based liquidity with out undermining native currencies.

Kaia DLT Basis’s Chairman, Dr. Sam Website positioning, mentioned with BeInCrypto how Asian policymakers and platforms ought to reply — and why a regional stablecoin alliance could also be crucial for the area’s long-term autonomy.

Website positioning didn’t hesitate to choose the stablecoin when requested about probably the most crucial development in Asia’s digital asset market.

“Essentially the most stylish one is stablecoin,” he mentioned. “Even earlier than the Genius Act, the rising utilization and quantity of stablecoin really ignited the dialogue and attracted a lot consideration in Asia.”

He careworn that stablecoin adoption is increasing quickly throughout Asia, making it removed from a phenomenon restricted to the US or Europe. USD-backed cash are additionally closely utilized by Asian people and companies. The surge extends past speculative buying and selling, with stablecoins more and more embedded in on a regular basis transactions, cross-border commerce, and regional regulatory agendas.

Leaders and Regional Defenders

When requested which nations are driving innovation, Website positioning pointed to 2 main ones.

“I might say in all probability Singapore or the UAE, as a result of they have been fairly superior when it comes to making rules for stablecoins. In Singapore, they already made the only foreign money stablecoin regime in 2023, not solely concerning the Singapore greenback, but additionally different main 10 currencies. And likewise the UAE, they made many regulation frameworks associated to crypto and stablecoins.”

Singapore’s early motion positioned it forward of different Asian jurisdictions in setting clear, enforceable guidelines. The UAE, led by Dubai and Abu Dhabi, has additionally constructed a complete regulatory framework for digital belongings, together with stablecoins.

In contrast, Website positioning mentioned, a number of nations concentrate on stablecoins pegged to their very own currencies.

“Japan, Korea, Hong Kong, China, and the Philippines are extra centered on their currency-based stablecoins as a result of they care about their individuals and their foreign money.”

This displays a shared precedence: defending home financial techniques and safeguarding nationwide currencies from being displaced by foreign-backed cash.

Genius Act: Each Menace and Alternative

The GENIUS Act has created a transparent framework for regulated USD stablecoins corresponding to USDC and PayPal USD. For Asia, Website positioning sees each hazard and potential.

“If we don’t have native foreign money stablecoins, the fiat foreign money can be much less used because the utilization of USD stablecoins can enhance quite a bit. But when we put together the regional stablecoin and the right utilization of USD stablecoins, then this might be a possibility for the Asian nations.”

Website positioning famous that regulated USD stablecoins below the GENIUS Act might additionally unlock new capital flows for Asia’s tokenized asset markets — from authorities bonds to actual property — boosting fundraising and buying and selling exercise. He additionally emphasised that as a result of stablecoins are sometimes issued and transacted on public blockchains, they’re clear to all members. On the identical time, privateness can nonetheless be preserved by means of selective anonymization of consumer knowledge.

Japan’s Strict Mannequin and the Want for Steadiness

Japan’s Payment Services Act allows solely banks, belief corporations, and licensed remittance suppliers to situation stablecoins, requiring full reserve backing and common audits. Website positioning sees this as a powerful safeguard for the yen.

“Regulation for stablecoin is a means of defending the Japanese foreign money and the Japanese market. Requiring a powerful reserve inside sure jurisdictions really can stop the cash from going out from the nation.”

However he additionally cautioned towards overreach.

“If the reserve requirement is simply too strict, that may stop the non-local gamers from getting into and scale back the interoperability with stablecoins backed by denominations of different nations, which is among the most vital roles of digital currencies. We’d like a stability for non-local gamers to play.”

Funds, E-Commerce, and Inclusion

Website positioning believes stablecoins might push Web3 into the mainstream in Asia, particularly in funds and e-commerce.

“Completely sure,” he affirmed. “In some nations, for instance, in Vietnam and Indonesia, QR funds are practically dominant, somewhat than bank card funds.”

By integrating stablecoins into QR-enabled wallets, thousands and thousands might transact with no need a checking account or card, which requires them to undergo the complexity of the financial institution’s authentication course of.

“We don’t must reinvent the interface by having the stablecoin as one other technique of foreign money we are able to enhance the transactions of fee and decrease the problem of the fee.”

Europe’s Edge and Asia’s Alliance Hole

Website positioning famous that Europe enjoys simpler liquidity coordination because of the euro and the MiCA framework. With its a number of currencies alongside the regulatory variety, Asia doesn’t have this benefit.

“A single foreign money is pointless in Asia, however a multi-currency stablecoin alliance could be very efficient. It will possibly enhance liquidity between completely different currency-backed stablecoins.”

Such an alliance might be a basis for cross-border interoperability and scale back friction between regional markets.

Kaia’s Roadmap for Regional Cooperation

Kaia is focused on increasing real-world use circumstances for stablecoins and driving adoption in Asia. It already helps USDT natively and plans to onboard yen-, rupiah-, and Hong Kong greenback–backed stablecoins. The second part is to construct an on-chain FX marketplace for seamless foreign money swaps and environment friendly cross-border settlements. This may enhance liquidity, decrease transaction prices, and allow sooner funds.

The ultimate stage is to ally Asian stablecoin issuers to standardize practices and develop regional community results.

“We’re positively engaged on that,” Website positioning mentioned of Kaia’s collaboration with LINE Messenger, probably the most in style ones within the area. “Sometime, the LINE customers from Japan or different nations might use completely different stablecoins contained in the LINE messenger. However it requires correct regulation as effectively.”

Kaia is working carefully with LINE to discover stablecoin integration, anticipating that after the authorized framework is prepared, LINE customers can ship and obtain stablecoins seamlessly, domestically and internationally.

Kaia is a Layer 1 blockchain platform launched in August 2024. It combines Klaytn from Kakao and Finschia from Naver, Korea’s dominant tech giants. Naver’s LINE Messenger has a large Asian consumer base in Japan, Taiwan, and different nations.

Kaia chain community onboarded Tether’s USDT in Could this yr, and it’s also in discussions with different stablecoin and fintech corporations to create potential KRW, JPY, and different currency-backed stablecoins.

Asia’s Defining Selection

For Website positioning, the technique is evident: construct native foreign money stablecoins, selectively combine USD liquidity, and join them by means of a regional interoperability framework.

“Stablecoins are not only a crypto instrument. They’re turning into the connective tissue of digital finance in Asia… able to linking funds, tokenized markets, and on a regular basis commerce.”

The GENIUS Act could solidify the greenback’s regulated position in international crypto. Whether Asia responds with fragmentation or a united technique will decide the area’s monetary autonomy for years.

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