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RFS DeFi Risk Intelligence Weekly
Institutional-Grade DeFi Risk Monitoring brought to you by RFS Consulting
Camryn Odom & Robert Franklin III
June 25, 2025 • Estimated Reading Time: 8 minutes
In partnership with
Welcome to another edition of RFS DeFi Risk Intelligence Weekly!
Here’s whats new this week:
"Regulation becomes reality. FIUSD is live. The stablecoin rails are here."
🏛️ U.S. Senate Passes Genius Act: The Regulatory Breakthrough Stablecoins Needed
This week, the U.S. Senate passed the Genius Act, marking the most comprehensive digital asset legislation in U.S. history. The bill creates a clear and enforceable regulatory framework for payment stablecoins—ending years of uncertainty and establishing a compliance pathway for institutions, fintechs, and crypto-native issuers alike.
❝ "The Genius Act is arguably the most important U.S. legislation to date for the future of digital dollars." As first reported by Leviathan News |
🔍 Key Components of the Genius Act
Federal + State Oversight:
Issuers must register federally with the Fed or obtain a state license recognized nationally.100% Reserve Mandate:
Stablecoins must be backed 1:1 by cash or short-duration U.S. Treasuries—banning unbacked or algorithmic models.CBDC Restrictions:
The Fed cannot issue a retail CBDC without direct approval from Congress—pushing stablecoins to the forefront.Industry On-Ramp:
Enables traditional banks, fintechs, and crypto platforms to enter the market with confidence and regulatory clarity.
🏦 Infrastructure Goes Live: Fiserv Launches FIUSD for U.S. Regional Banks
In a major post-Genius Act development, Fiserv, a leading U.S. banking tech provider, has launched FIUSD, a white-label stablecoin issuance platform for regional and community banks.
📌Why FIUSD Matters:
Infrastructure-as-a-Service | Genius Act-Aligned |
First-Mover Advantage | Multichain Capabilities: |
Also see: Stablecoins | Banks | Fiserv
📊 RFS Risk Intelligence Insights
Post-Genius Act Issuer Risk Ratings:
Stablecoin / Protocol | Type | RFS Risk Score | Notes |
|---|---|---|---|
USDC (Circle) | Centralized | 🟢 Low (A-) | Strong reserves, attestation transparency, pending bank charter |
PayPal USD (PYUSD) | Centralized | 🟢 Low (A) | Institutional backing, full reserve clarity, low on-chain liquidity |
GHO (Aave DAO) | Over-collateralized | 🟢 Low (A-) | DAO-managed, multi-chain scaling, minor oracle risk |
MakerDAO (DAI) | Crypto-collateralized | 🟡 Moderate (B+) | Complex governance, RWAs rising, over-collateralized peg model |
Frax (FRAX) | Hybrid / Algorithmic | 🟡 Moderate (B) | Partially collateralized, in transition to full-reserve model |
Tether (USDT) | Centralized | 🔴 High (C) | Reserve opacity, offshore exposure, lacks regulatory alignment |
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📈 Market Impact Projections (RFS Internal Analytics)
Institutional Market Share (2025–2026 Forecast):
USDC: 43%
PYUSD: 18%
FIUSD: 12–15% within 12 months
GHO: 10%, pending expansion into RWAs
DAI/FRAX: Slated to decline unless they restructure to full compliance
RFS Risk Signal Alerts:
FRAX and DAI may face delistings from bank-integrated exchanges and fintech apps unless governance reforms are accelerated.
GHO is emerging as a dark horse in the DAO-native sector, showing early risk-alignment with regulators.
🧠 Strategic Insight from RFS:
"The Genius Act and FIUSD mark a structural shift. What SWIFT was to cross-border wires, stablecoins will be to programmable finance. Banks can no longer ignore tokenized dollars." |
🙇🏾♀️ Camryn’s Corner
This week we are introducing a new segment brought to you by your co-author and editor! Each week I will highlight my top 5 DeFi Applications, Protocols, or other news worthy subjects in the crypto and DeFi world.
Diving into DeFi: Top 5 Applications for Newcomers
Navigating the world of Decentralized Finance can feel overwhelming at first, but certain applications stand out for their user-friendliness and fundamental utility. These platforms offer an accessible entry point to understanding core DeFi concepts like swapping, lending, and earning yield. Focusing on these applications can provide a solid foundation for any newcomer eager to explore the decentralized financial landscape.
Here's a look at 5 top DeFi applications that are highly recommended for beginners:
Application | Primary Function | Notes |
|---|---|---|
Decentralized Exchange (DEX) for token swaps | Intuitive interface for trading cryptocurrencies directly from your wallet; no complex order books. | |
Lending and Borrowing Protocol | Clear display of interest rates for lending your crypto to earn yield or borrowing against your assets. | |
DEX and Yield Farming (Binance Smart Chain) | Similar to Uniswap but on Binance Smart Chain, offering lower fees and accessible yield farming opportunities for beginners. | |
Lending and Borrowing Protocol | Simple design for supplying assets to earn interest and borrowing with transparent rates. | |
Stablecoin Protocol (DAI) | Understand how decentralized stablecoins are created and maintained by collateralizing crypto assets. |
🔮 What to Expect Next Week
RFS Dashboard: "Stablecoins Under Compliance Pressure"
Full issuer-by-issuer breakdown
DAO compliance playbooks
Protocol-level response strategiesDeep Dive: PYUSD’s Quiet Growth in Treasury-Pegged MMAs
Analysis of reserve yield vs. traditional banking rails
📢 Call to Action
Now Accepting 3 Pilot Clients
We’re onboarding a limited number of DeFi protocols and institutional funds into our real-time risk scoring dashboard and DeFi compliance architecture.
💼 Custom engagements | Audit-aligned scoring | Institutional onboarding
🫱🏽🫲🏿 Support RFS Risk Intelligence Weekly
If you find value in our research, you can support continued coverage, data modeling, and industry dashboards:
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Stay sharp. Stay sovereign. Stay stable.
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Till next time,
RFS DeFi Risk Intelligence Weekly
🔓Disclaimer: This newsletter is for informational purposes only and does not constitute legal, investment, or tax advice. Always consult a qualified professional before making financial decisions.