BofA Forecasts 9-28% Stablecoin Market Cap Jump as U.S. Regulatory Clarity Spurs $75B Surge

Bank of America (BofA) has projected a potential $75 billion surge in stablecoin supply over the near term, driven by institutional interest in tokenized finance and recent regulatory advancements in the United States. The bank’s analysis highlights a strategic pivot among major financial institutions toward blockchain-based digital assets, citing coordinated efforts to issue stablecoins through consortium-led models. This marks a departure from earlier skepticism, as U.S. banks now view stablecoins as viable tools for cross-border transactions and alternative asset storage [1]. The forecast aligns with a growing demand for tokenized deposits and money market fund alternatives, which BofA estimates could catalyze a "modest" short-term rise in stablecoin market capitalization from its current $270 billion to $295–$345 billion [1].

The regulatory environment has shifted dramatically, bolstered by the recent enactment of the GENIUS Act. Signed into law by President Donald Trump, the legislation streamlines stablecoin issuance by clarifying compliance requirements and integrating these digital assets into the broader financial system. BofA emphasized that this legal clarity has already spurred new product development and infrastructure investments. Complementing this, the CLARITY Act—pending Senate approval after passing the House—aims to finalize a framework distinguishing digital assets as either securities or commodities. Together, these measures are expected to accelerate tokenized finance adoption, particularly as banks navigate a competitive landscape where stablecoins could rival traditional payment systems [1].

The projected growth in stablecoins is anticipated to ripple into Treasury Department strategies. With stablecoins typically backed by U.S. dollar reserves, BofA forecasts increased demand for short-term U.S. Treasuries to meet reserve needs. This shift could prompt adjustments in Treasury issuance, potentially prioritizing short-term bills over longer-duration instruments. The interplay between stablecoin growth and Treasury demand underscores the evolving interdependence of digital and traditional financial markets, with BofA suggesting institutions may need to recalibrate their reserve management practices accordingly [1].

Traditional banking giants are also reevaluating their crypto strategies. JPMorgan Chase, historically cautious under CEO Jamie Dimon, has begun exploring crypto products and Bitcoin exposure, reflecting a broader industry trend of recalibrating risk assessments. However, most institutions view stablecoins as complementary to existing systems rather than disruptive. They emphasize their utility in cross-border settlements and asset diversification, with minimal immediate impact on domestic payment infrastructures [1].

The analysis underscores a cautious but optimistic outlook for stablecoins. While regulatory clarity and institutional participation are seen as key drivers, challenges such as market volatility and compliance requirements remain. BofA’s projection of a $75 billion surge hinges on sustained legislative momentum and coordinated industry adoption. The evolving landscape highlights stablecoins’ potential to reshape reserve management and cross-border finance, even as banks navigate the balance between innovation and systemic stability [1].

Source: [1] [BofA Sees $75B Stablecoin Surge as Wall Street Warms to Digital Dollars] [https://cryptodaily.co.uk/2025/07/bofa-sees-75b-stablecoin-surge-as-wall-street-warms-to-digital-dollars]