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A Transformative Era for Financial Services
The financial sector in the UK and US is currently experiencing a profound shift, heralded by the introduction of two pivotal legislative pieces: the Big Beautiful Bill and the GENIUS Act. These acts are set to redefine the payments landscape, prompting financial institutions to rethink their strategies and technological infrastructure. To gain a clearer understanding of these implications, Bobsguide recently engaged in a discussion with Deepak Gupta, EVP of Engineering, Product, and Services at Volante Technologies. A seasoned innovator in cloud and software-as-a-service domains, Gupta’s expertise offers invaluable insights into the challenges and opportunities emerging within the industry.
The GENIUS Act: Clarity for Digital Assets
According to Gupta, the enactment of the GENIUS Act alongside the Big Beautiful Bill signifies a "watershed moment" for payments. He elaborates that the GENIUS Act provides much-needed regulatory clarity for stablecoins, effectively shifting the industry’s focus from the feasibility of their use to the practicalities of their integration. By mandating a 1:1 reserve backing with high-quality, liquid assets, the act fundamentally transforms stablecoins from speculative digital instruments into reliable and trusted financial tools.
“This newfound clarity instills confidence in banks, enabling them to integrate stablecoin-based payment infrastructure,” Gupta explains. He anticipates that institutions will explore various models, from issuing their own stablecoins to forming partnerships with external providers. The most compelling immediate applications for stablecoins are expected to be in cross-border payments and treasury liquidity. Here, stablecoins possess the potential to significantly reduce friction and accelerate settlement times, potentially bringing them down from days to mere seconds. While domestic real-time payments are already well-supported by existing systems like FedNow and RTP, stablecoins, when combined with always-on payment rails and rich ISO 20022 data, could unlock unprecedented international efficiencies for corporate entities.
The Big Beautiful Bill: Driving Modernization
Working in tandem with the GENIUS Act, the Big Beautiful Bill serves as a strong incentive for technology investment and modernization within financial institutions. This legislation encourages a rapid acceleration of cloud migration, the adoption of multi-rail payment readiness, and the integration of artificial intelligence (AI) technologies. Gupta highlights that this bill presents both a substantial opportunity and a significant pressure point for banks. The reinstatement of 100% bonus depreciation for certain research and development expenditures offers a compelling financial motivation for institutions to upgrade their systems and processes.
Gupta points out that banks still relying on outdated legacy systems will face considerable challenges. These antiquated systems, often siloed, expensive, and difficult to scale, are now evolving into an existential liability. He stresses that the new regulatory and technological framework necessitates a strategic prioritization of flexible, cloud-native, and API-first platforms. Such platforms are essential for seamlessly integrating new payment rails, including stablecoins, without incurring prohibitive costs or requiring bespoke development. Furthermore, Gupta emphasizes the critical role of orchestration layers, which enable banks to plug in diverse payment types while diligently maintaining compliance and resilience. He also foresees AI becoming an indispensable tool for managing the operational risks inherent in modernization efforts, aiding in the monitoring of transaction flows and the detection of anomalies.
The Imperative of Immediate Action
Gupta contends that the combined force of these two legislative acts creates a "perfect storm" for modernization. The GENIUS Act provides the necessary regulatory framework for digital assets, while the Big Beautiful Bill mandates the technological upgrades required to leverage them. This dual pressure implies that delaying modernization is no longer a viable strategy for traditional financial institutions aiming to remain competitive and relevant.
“For institutions that act swiftly, the window of opportunity spans the next 18 to 24 months,” Gupta asserts. He suggests that banks pioneering stablecoin solutions and demonstrating robust multi-rail integration will gain a significant competitive advantage, particularly with corporate treasurers seeking faster, more programmable payment options. He outlines the essential components of a truly modern infrastructure, which includes cloud-native architecture, an API-first approach, multi-rail orchestration capabilities, ISO 20022 data support, and embedded AI. A phased rollout strategy, he recommends, can effectively balance the urgent need for speed with prudent risk management.
Envisioning the Future of Payments
By 2026, Gupta predicts that successful banks will have stablecoin pilot programs live, multi-rail orchestration actively in production, and AI-driven compliance tools fully embedded within their operations. The most critical and urgent upgrades, he states, revolve around establishing smooth on/off-ramping mechanisms between fiat and digital assets, integrating digital wallets, and developing scalable cloud infrastructure.
Looking further ahead to 2030, Gupta believes the payments landscape will be fundamentally transformed: faster, richer in data, and programmable by default. He anticipates that stablecoins and other regulatory-backed digital assets will operate alongside traditional payment networks, with interoperability emerging as the cornerstone of success. To prepare for this future, Gupta offers three immediate, critical actions for banks:
- Develop robust on/off-ramp capabilities for stablecoins to ensure seamless integration with existing financial systems.
- Deploy comprehensive orchestration platforms that can efficiently support multiple payment rails concurrently.
- Invest strategically in AI technologies for enhanced compliance, sophisticated fraud detection, and overall operational efficiency.
By prioritizing investments that deliver both regulatory adherence and tangible customer value, Gupta concludes, financial institutions can effectively position themselves to thrive in an increasingly competitive and digitally driven payments ecosystem.
