Bank of America Confirms Stablecoin Plans as Crypto Laws Advance

Bank of America CEO Brian Moynihan said on Wednesday that the bank is actively developing a stablecoin and intends to move forward with the initiative, though he did not provide a specific timeline.

Banks worldwide have eyed stablecoins as a means to streamline payments, reduce settlement times, and enhance cross-border liquidity. But for U.S. institutions, regulatory uncertainty has been a major restraint, until recently. The U.S. House of Representatives is moving forward on two landmark bills: the GENIUS Act, which proposes a clear federal framework for stablecoin issuance, and the CLARITY Act, which would establish definitions and oversight for crypto assets. Both appear on track for committee approval, with the possibility of a full floor vote later this week and rapid enactment expected. Legal clarity is precisely what Moynihan sees as the green light. Once that arrives, BoA is ready to move, potentially even in partnership with other major banks like JPMorgan and Citigroup, both of which have signaled their own stablecoin ambitions.

Bank of America joins its peers in ramping up stablecoin strategies. Citigroup’s CEO Jane Fraser says Citi is “looking at the issuance of a Citi stablecoin” to bolster digital payment offerings. JPMorgan Chase, once cautious, has also softened its stance, with CEO Jamie Dimon indicating that the bank will “be involved” in stablecoins. Morgan Stanley’s CFO Sharon Yeshaya described stablecoins as a growing area of interest for client services, though she noted it’s "a little early to tell" what role they will play. A Financial Times analysis places BoA alongside fintech powerhouses like PayPal, Stripe, Revolut, and Standard Chartered in this stablecoin gold rush, driven by rising acceptance among regulators and growing demand for tokenized payment solutions.

Bank of America sees its stablecoin as a natural extension of its existing infrastructure. Moynihan likened the potential offering to other digital innovations such as Zelle and Venmo, highlighting that payments volume varies by use-case. However, with clear regulation and sufficient demand, he suggested adoption could scale quickly. Building out full-scale stablecoin infrastructure may take between three to five years, but once complete, it could transform how institutions handle cross-border transactions, manage liquidity, and structure remittances.

Still, challenges remain. The Bank of England’s governor Andrew Bailey recently cautioned that privately issued stablecoins could pose systemic risks by reducing traditional bank deposits. He expressed a preference for central bank digital currencies or tokenized deposits controlled by public institutions. Moynihan has echoed the need for robust oversight, saying that stablecoins must be no different from money-market funds in terms of dollar backing, auditability, and liquidity.

Stablecoins processed more transaction volume in 2024 than Visa and Mastercard combined, about $27.6 trillion. The total stablecoin supply stood at around $200–$224 billion, with Tether and Circle dominating this market. Any new bank-backed stablecoin would need to build trust and gain substantial market share to compete meaningfully.

If Bank of America launches a fully dollar-backed stablecoin integrated into its vast retail and institutional networks, the implications could be profound. Settlement times for cross-border transactions could drop from days to seconds, reducing costs for consumers and institutions alike. The presence of a trusted U.S. bank could apply competitive pressure to crypto-native stablecoins and fintech challengers, particularly in compliance-sensitive sectors. Moreover, a successful rollout could influence how regulators design future central bank digital currencies and digital payment infrastructure more broadly.

Much hinges on developments in Washington, where lawmakers are expected to vote on the GENIUS Act and CLARITY Act by the end of the week. If passed, and signed by President Trump, these laws would open the door to a wave of institutional stablecoin offerings with clear guardrails. Bank of America’s next moves will likely be shaped by those outcomes, as well as the results of ongoing pilot programs and strategic partnerships within the financial sector. Regulators from the Federal Reserve, SEC, and Financial Stability Board are also expected to weigh in on issues such as reserves, licensing, and systemic risk.