Matrixport: Stablecoin liquidity contracts, and short-term purchasing power in the crypto market is also weakened

CoinVoice · 2026-01-28T07:06:59+00:00

Matrixport released a report stating that the "GENIUS Act" will prohibit interest payments on stablecoins, leading funds to flow into alternatives such as tokenized money market funds. USDC experienced a net redemption of $6.5 billion over six weeks, causing stablecoin liquidity to decline and funds to shift towards safe-haven assets like gold. Circle is focusing on increasing trading activity for stablecoins.

CoinVoice

2026-01-28 07:06:59

Abstract generation in progress

CoinVoice has learned that Matrixport released a chart today stating that the “GENIUS Act” is expected to prohibit stablecoin issuers from paying interest or yields to holders. Funds may thus shift towards yield-generating alternatives such as tokenized money market funds. Over the past six weeks, USDC has been redeemed by approximately $6.5 billion, leading to a contraction in stablecoin liquidity and weakening 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 stablecoin supply. Accordingly, Circle is shifting its focus from “market capitalization” to “trading activity,” and is promoting the use and payment adoption of stablecoins in real-world scenarios through initiatives like Circle Payment Network and collaborations with companies like Intuit.

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