Bank of America Plans Stablecoin Launch Amid Rising US Regulatory Momentum

Bank of America CEO Brian Moynihan confirmed the bank is actively exploring the development and potential launch of its own stablecoin to modernize payment systems and handle large volumes of client transactions more efficiently. Although no launch date or partners have been disclosed, the bank is evaluating client demand and scalability, signaling a cautious yet strategic move alongside other major U.S. banks like JPMorgan and Citigroup who are also entering the stablecoin space. The rise in stablecoin transaction volumes, which surpassed those of Visa and Mastercard in 2024, has attracted significant attention, with Tether's USDT and Circle's USDC dominating the market. Moynihan emphasized that broader adoption depends on regulatory clarity, referencing bipartisan support for the GENIUS Act in the Senate, which aims to create a federal framework for stablecoins, though it has faced delays in the House. This momentum aligns with a broader shift among legacy financial institutions toward blockchain-based payment rails, aiming to leverage stablecoins as a new settlement layer. Bank of America’s engagement reflects Wall Street’s growing interest in integrating stablecoins into mainstream financial operations, pending suitable legislation and client readiness.