Georgia charts a course on stablecoin licensing: What it means for payments companies

I. Introduction

On May 11, 2026, Georgia enacted the Payment Stablecoin Act (HB 1272), establishing one of the first state licensing regimes for payment stablecoins designed to align with the federal GENIUS Act. For payments companies, fintech firms and digital asset issuers, the Act establishes a purpose-built state licensing framework for stablecoin issuance, designed to qualify under the GENIUS Act's federal-state supervisory model. It joins an existing landscape of non-bank pathways in Georgia, such as money transmission licensure and narrow bank charters, but is the first Georgia authorization tailored specifically to stablecoin activities.

The Act becomes effective on the earlier of January 18, 2027, or 120 days after the primary Federal payment stablecoin regulators issue "any" final implementing regulations under the GENIUS Act. The text, which mirrors that of the GENIUS Act, would appear to trigger the 120-day clock when any primary stablecoin regulator issues a final rule, regardless of whether other rules are still pending.

II. Overview of the act

The Act establishes a licensing regime under which eligible entities may issue "payment stablecoins," which are digital assets that are designed or marketed to be used for payment or settlement and redeemable for a fixed amount of monetary value, typically on a one-to-one basis for US dollars. Licensure is not limited to depository institutions. Non-depository entities, including fintech companies, trust companies and limited-purpose state-chartered banks, may apply. Key provisions include:

• Licensing requirement. No person may issue a payment stablecoin in or from Georgia without a license from the Department, a federal regulator under the GENIUS Act, or another state’s payment stablecoin regulator.
• Permitted activities. Licensed issuers are generally limited to core stablecoin functions, which include issuance, redemption, reserve management and related custodial services.
• Exclusion from money transmission. Issuance of stablecoins, and offering, sale and redemption of those stablecoins, are excluded from Georgia's money transmission laws. The Act purports to require a money transmission license for activities other than core stablecoin activities (e.g., facilitating stablecoin transfers between third parties) when conducted by federally qualified issuers and issuers licensed by other states.
• Reserve requirements. Licensees must maintain 1:1 reserves of high-quality liquid assets (e.g., US dollars and short-term treasuries), held in trust for stablecoin holders, with monthly public disclosures on reserve composition.
• Capital and financial requirements. The Act imposes minimum capital requirements and mandates GAAP-compliant audited financial statements.
• Redemption at par. Holders are entitled to redeem stablecoins at par, subject to reasonable operational conditions.
• Prohibition on yield. In alignment with the GENIUS ACT provisions, licensed issuers may not pay interest or yield on payment stablecoins.
• In-state presence. Licensed issuers are required to have an office in the state and to employ a minimum number of employees based in the state (to be determined by Department rulemaking). 

III. Relationship to the GENIUS Act and the state landscape

The GENIUS Act establishes a dual-track supervisory regime in which issuers below the $10 billion issuance threshold set by the GENIUS Act may operate under state regimes certified as "substantially similar" to federal standards, while issuers over the threshold are subject to direct federal approval and oversight. The Georgia Act is expressly designed to qualify for this state pathway under the GENIUS Act.

IV. Why Georgia? A continuation of its chartering model

The Act extends a regulatory philosophy Georgia has applied successfully through its Merchant Acquirer Limited Purpose Bank (MALPB) charter, which allows non-bank merchant acquirers to access payment card networks without becoming full-service banks. Both the MALPB and the Georgia Stablecoin Act reflect the same approach: narrow, purpose-built authorizations for specific payment activities; non-depository pathways for participation in core financial functions; and centralized supervision by a single, experienced regulator. For foreign-based companies and non-traditional payments firms, Georgia's track record of constructive engagement with innovative charter applicants is a meaningful differentiator.

V. Practical implications

Who should pay attention. Georgia’s existing stablecoin issuers seeking a state-level pathway; payments companies integrating stablecoins into settlement, cross-border, or merchant workflows; companies already operating under Georgia's MALPB or similar structures; and investors evaluating regulatory environments for digital asset businesses.

Strategic considerations:

• Federal escalation. Because the GENIUS Act imposes federal supervision above a $10 billion issuance threshold, companies must consider how quickly their business model could scale into federal oversight.
• Operational constraints and prohibition on paying interest. Limitations on permissible activities and the prohibition on yield (such as interest on the deposit balance) constrain product design and revenue models. Close attention should also be paid to other developments related to yield on stablecoin activities under the proposed Clarity Act currently being debated in Congress and OCC rulemaking. 
• Timing. Because practical implementation will develop alongside the ongoing development of Department and GENIUS Act regulations, stakeholders should anticipate an evolving landscape in the near term and plan accordingly.
• In-state presence. Requirement to maintain an in-state office and minimum in-state employee headcount.

Eversheds Sutherland has industry-leading experience advising payments companies on obtaining a Georgia MALPB charter. Our team is well-positioned to advise on applications under Georgia’s Payment Stablecoin Act and related federal and state regulatory strategies.

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If you have any questions about this Legal Briefing, please feel free to contact any of the attorneys listed or the Eversheds Sutherland attorney with whom you regularly work.