Bank of America's Stablecoin Ambition Signals Mainstream Crypto Adoption.

Bank of America is developing a stablecoin, with CEO Brian Moynihan confirming the bank has done extensive work on issuing dollar-pegged tokens. Moynihan emphasized the importance of gauging client demand and market infrastructure before launching. The bank is expected to partner with established players to ensure the token meets both transactional needs and regulatory standards. A successful launch could attract new deposit inflows and position Bank of America as a liquidity provider at the heart of future tokenized payment systems.

Bank of America (BofA) is advancing its exploration of stablecoins, signaling a significant shift in how traditional banks may leverage blockchain technology to streamline payment systems. CEO Brian Moynihan confirmed during the bank's second-quarter earnings call that BofA has done extensive work on issuing dollar-pegged tokens [1]. Moynihan emphasized the importance of gauging client demand and market infrastructure before launching. The bank is expected to partner with established players to ensure the token meets both transactional needs and regulatory standards.

Moynihan noted that BofA is still trying to figure out how big or small the stablecoin market opportunity might be, given that some regions have not seen large amounts of money movement. He suggested that the bank would likely roll out a stablecoin in partnership with other firms once there is clearer client demand [2]. This cautious yet proactive approach reflects broader industry trends where legacy financial institutions are preparing for a future shaped by digital currencies and regulatory frameworks.

BofA has reportedly considered issuing a stablecoin jointly with other major financial institutions, such as JPMorgan and Citigroup. This collaborative approach reflects a growing consensus among legacy banks that collective action may be necessary to navigate the complex regulatory landscape and achieve widespread adoption [3]. Moynihan has also emphasized the importance of supportive legislation, noting that BofA’s progression in this space is contingent upon clear regulatory frameworks.

A successful launch could attract new deposit inflows and position Bank of America as a liquidity provider at the heart of future tokenized payment systems. The stablecoin market is growing rapidly, with transaction volumes surpassing those of Visa and Mastercard combined in 2024. Since then, the total value of stablecoins in circulation has surged to $257 billion, nearly double the amount at the beginning of 2023 [4].

The GENIUS Act, a bill aimed at regulating the stablecoin industry, passed the Senate in June but stalled in the House earlier this week when two key provisions failed to advance. The bill is expected to go to a floor vote in the House by Thursday [2]. The stablecoin market's growth has prompted the administration of US President Donald Trump to make stablecoin legislation a priority.

References:

[1] https://www.coindesk.com/business/2025/07/16/bank-of-america-joins-stablecoin-rush-as-ceo-moynihan-says-work-already-underway
[2] https://cointelegraph.com/news/bank-of-america-stablecoin-strategy-regulatory-push?utm_campaign=rss_partner_inbound&utm_medium=rss&utm_source=rss_feed
[3] https://cointelegraph.com/news/bank-of-america-stablecoin-strategy-regulatory-push
[4] https://en.coinotag.com/bank-of-america-explores-usdt-stablecoin-use-amid-regulatory-uncertainty-and-market-growth/