Bank of America Prepares Stablecoin Launch Amid Regulatory Uncertainty

Bank of America (BofA) is actively preparing to launch its own stablecoin, according to CEO Brian Moynihan. During a recent statement, Moynihan revealed that the bank has been diligently working on this initiative, although the exact timeline for the rollout remains uncertain. Moynihan emphasized that the bank is committed to moving forward with the stablecoin launch soon, pending further developments in the regulatory landscape.

Moynihan highlighted that the bank's approach to launching a stablecoin is contingent on understanding client demand, which he noted is currently not high. He suggested that the stablecoin would likely be rolled out in partnership with other industry players at an appropriate time. The progress has been slower than some investors anticipated, as the banking sector awaits clearer legal guidelines.

BofA initially announced its plans to launch a dollar-pegged stablecoin in February, emphasizing that regulatory developments would significantly influence its adoption. Moynihan confirmed at the time that a stablecoin is inevitable, provided that the necessary legal frameworks are in place. This stance aligns with the broader industry trend, where several major banks are exploring stablecoin offerings as part of their crypto strategies.

Citigroup, for instance, has announced plans to issue its own stablecoin as part of a broader crypto strategy. The bank is also exploring reserve management for stablecoins and developing crypto custody services. Jane Fraser, CEO of Citigroup, described the issuance of a Citi stablecoin as a good opportunity for the bank. Similarly, Morgan Stanley is closely monitoring stablecoin developments, with CFO Sharon Yeshaya noting that the bank is investigating potential use cases and client benefits. However, Yeshaya acknowledged that it is still early to determine the full impact of stablecoins on their business model.