# Payment stablecoin (GENIUS Act)

The GENIUS Act's term for a digital asset used for payments that its issuer must redeem for a fixed monetary amount.

Canonical: https://achivx.org/glossary/payment-stablecoin/
Updated: 2026-11-01

A payment stablecoin is the GENIUS Act's term for a digital asset that is, or is designed to be, used as a means of payment or settlement, whose issuer is obligated to convert, redeem or repurchase it for a fixed amount of monetary value and represents that it will keep a stable value relative to that amount. The definition excludes national currencies, deposits and securities. Issuers may not pay holders interest or yield solely for holding, using or retaining it.

## What the sources say

| Source | Quote | Link |
|---|---|---|
| GENIUS Act sec. 2(22)(A): definition | "(22) Payment stablecoin.--The term “payment stablecoin”-- (A) means a digital asset-- (i) that is, or is designed to be, used as a means of payment or settlement; and (ii) the issuer of which-- (I) is obligated to convert, redeem, or repurchase for a fixed amount of monetary value, not including a digital asset denominated in a fixed amount of monetary value; and (II) represents that such issuer will maintain, or create the reasonable expectation that it will maintain, a stable value relative to the value of a fixed amount of monetary value; and" | [govinfo.gov](https://www.govinfo.gov/content/pkg/PLAW-119publ27/html/PLAW-119publ27.htm) |
| GENIUS Act sec. 2(22)(B)(i): excludes national currency | "(B) does not include a digital asset that-- (i) is a national currency;" | [govinfo.gov](https://www.govinfo.gov/content/pkg/PLAW-119publ27/html/PLAW-119publ27.htm) |
| GENIUS Act sec. 2(22)(B)(ii): excludes deposits | "(ii) is a deposit (as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)), including a deposit recorded using distributed ledger technology; or" | [govinfo.gov](https://www.govinfo.gov/content/pkg/PLAW-119publ27/html/PLAW-119publ27.htm) |
| GENIUS Act sec. 2(22)(B)(iii): excludes securities | "(iii) is a security, as defined in section 2 of the Securities Act of 1933 (15 U.S.C. 77b), section 3 of the Securities Exchange Act of 1934 (15 U.S.C. 78c), or section 2 of the Investment Company Act of 1940 (15 U.S.C. 80a-2)" | [govinfo.gov](https://www.govinfo.gov/content/pkg/PLAW-119publ27/html/PLAW-119publ27.htm) |
| GENIUS Act sec. 4(a)(11): no interest or yield | "No permitted payment stablecoin issuer or foreign payment stablecoin issuer shall pay the holder of any payment stablecoin any form of interest or yield (whether in cash, tokens, or other consideration) solely in connection with the holding, use, or retention of such payment stablecoin." | [govinfo.gov](https://www.govinfo.gov/content/pkg/PLAW-119publ27/html/PLAW-119publ27.htm) |
| US Treasury press release (17 August 2026): licence requirement | "Beginning on January 18, 2027, the expected effective date of the GENIUS Act, a person generally may not “issue a payment stablecoin in the United States” unless the person has obtained an appropriate federal or state license." | [home.treasury.gov](https://home.treasury.gov/news/press-releases/sb0605) |

## Related terms

- [Stablecoin](/glossary/stablecoin/)
- [E-money token (EMT, MiCA)](/glossary/e-money-token/)
- [Yield-bearing stablecoin](/glossary/yield-bearing-stablecoin/)
- [Issuer failure / insolvency](/glossary/issuer-failure/)
- [Deposit insurance](/glossary/deposit-insurance/)

## See also

- Explainer: [What is the GENIUS Act, and what does it change for USDT and USDC?](https://achivx.com/academy/issuers/what-is-the-genius-act.html)

Checked against the sources on 2026-11-01.

## Sources
- https://www.govinfo.gov/content/pkg/PLAW-119publ27/html/PLAW-119publ27.htm
- https://home.treasury.gov/news/press-releases/sb0605