Bank of America Signals Stablecoin Launch as Regulation Advances

The CEO of Bank of America has confirmed that the bank is prepared to launch a stablecoin if US lawmakers approve new legislation. 

This development comes amid a broader shift in Washington’s approach to digital assets, with the GENIUS Act offering a clear federal structure for stablecoins. 

The plan highlights how traditional banks are now moving into a space once dominated by startups and crypto-native firms.

Bank of America Joins the Stablecoin Race

Bank of America’s entry into the stablecoin space would mark a major moment for traditional finance. 

While JPMorgan has already released its coin for internal transactions, no other major US bank has gone public with stablecoin plans until now. CEO Brian Moynihan confirmed the bank’s intentions during a recent interview in Washington, D.C., saying that the only barrier is legality.

According to Moynihan, once Congress authorises stablecoins for general banking use, Bank of America will participate fully. 

He explained that a dollar-backed stablecoin would simply be a new way to move funds, just like converting currencies. The bank has already developed blockchain patents and internal systems, suggesting it is technically ready to proceed.

The timing aligns with strong political momentum. With President Trump back in office and Republican lawmakers signalling support for digital assets, Congress has pledged to pass stablecoin legislation in the administration’s first 100 days. This would provide a legal pathway for banks to begin offering stablecoins to customers.

Read more: A New Focus on Cross-Border Payments and Stablecoins

The Role of the GENIUS Act in Enabling Stablecoins

The GENIUS Act, short for Guiding and Establishing National Innovation for US Stablecoins, lays the groundwork for this transformation. 

Unlike earlier bills, it provides a focused and detailed legal structure for stablecoins used in payments. It separates them from other digital assets like securities or commodities and introduces specific rules for licensing, reserves, and consumer protection.

Under the proposed law, any institution issuing stablecoins must maintain a one-to-one reserve backing with highly liquid assets such as cash or Treasury bills. 

Issuers will also face regular audits and strict limits on how reserves can be used. These rules aim to ensure that stablecoins remain stable, redeemable, and safe for everyday use.

The bill introduces a dual oversight structure, allowing both federal and state regulators to supervise issuers. Institutions with more than ten billion dollars in circulation will fall under federal control, while smaller players can remain under state rules. This setup allows flexibility for innovation while maintaining safety for users.

For a bank like Bank of America, which already complies with federal standards, the GENIUS Act could make it easier to enter the space once the bill becomes law.

Read more: The Future of Yield-Bearing Stablecoins on Solana

How Bank-Led Stablecoins Could Affect Digital Finance

A stablecoin issued by a major US bank would have major implications. First, it would add trust for customers who may not be familiar with crypto-native issuers. A stablecoin backed by a well-known institution and regulated under national rules could be more appealing to businesses and individuals alike.

Second, it could strengthen the role of the US dollar in digital transactions. Stablecoins already handled over t33trillion in volume last year, more than Visa and Mastercard combined. If banks begin issuing their versions, that figure could rise even more quickly.

Third, it would increase competition in the sector. With JPMorgan already offering its token for institutional transfers and Charles Schwab hiring digital asset specialists, the stage is set for rapid development across traditional finance.

Bank of America’s cautious stance on crypto in the past may benefit it now. With clearer laws and a well-established structure like the GENIUS Act, the bank can enter the market in a more secure and predictable way. It also benefits from years of preparation, having filed hundreds of blockchain-related patents over the past decade.

The move could reshape not only how consumers send money but also how banks interact with each other and with central institutions.

Conclusion

Bank of America’s stablecoin plans reflect a growing shift in how traditional institutions view digital finance. With the GENIUS Act offering a structured legal path, the bank appears ready to move once Congress gives the green light.

This shift may open the door for widespread stablecoin adoption in the United States, especially if more banks follow suit. For now, all eyes remain on Washington as lawmakers consider the bill that could bring stablecoins into the financial mainstream.

Frequently Asked Questions

1. What is the GENIUS Act, and how does it relate to Bank of America?
The GENIUS Act is a US bill that creates a legal structure for stablecoins. It allows regulated institutions like Bank of America to issue dollar-backed tokens for payments if they meet reserve and licensing standards.

2. Will Bank of America stablecoin be available to everyday users?
If the law passes, Bank of America could issue a stablecoin that functions like a digital dollar, potentially usable by both businesses and individuals for everyday transactions.

3. How is this different from JPMorgan’s JPM Coin?
The JPM Coin is currently only used for internal institutional transfers. Bank of America’s proposed stablecoin could be more widely accessible, depending on legal approvals and how the bank decides to roll it out.

Investor Caution 

While the crypto hype has been exciting, remember that the crypto space can be volatile. Always conduct your research, assess your risk tolerance, and consider the long-term potential of any investment.

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