Bank of America Is Ready to Launch Its Own Stablecoin Once Regulations Are in Place

Bank of America, the second-largest U.S. bank with $3.26 trillion in assets, is ready to launch its own stablecoin once regulatory frameworks are established

Bank of America is ready to launch its own stablecoin once regulatory frameworks are established, according to CEO Brian Moynihan.

Speaking at The Economic Club of Washington, D.C. on Tuesday, Moynihan confirmed the bank’s intentions to create a “Bank of America Coin” that would be fully backed by U.S. dollars.

“It’s pretty clear that there’s going to be a stablecoin, which is going to be fully dollar-backed,” Moynihan stated during his conversation with businessman David Rubenstein. “If they make that legal, we will go into that business.”

Moynihan described the proposed stablecoin as functionally similar to existing financial products. “It’s no different than the money market fund with check access, it’s no different than a bank account, really,” he explained. The CEO indicated that once legal, customers would “have a Bank of America coin” that they could “move back and forth” for various transactions.

This announcement comes as the stablecoin market has grown to a value of over $230 billion despite the lack of clear regulations in the United States. The current market is dominated by Tether’s USDT with approximately $142 billion in circulation and Circle’s USDC with about $56 billion.

The regulatory landscape appears to be changing rapidly under the Trump administration. Senate Banking Committee Chairman Tim Scott (R-SC) recently promised that a stablecoin bill, known as the GENIUS Act, will pass through both chambers of Congress and receive the President’s signature within Trump’s first 100 days in office.

During an earlier appearance on CNBC’s “Squawk Box” this year, Moynihan predicted that “the banking system will come in hard on the transactional side” of stablecoins once legislation passes. He believes they would find broad use in payment systems.

Bank of America would not be the first major financial institution to launch a stablecoin. Its largest competitor, JP Morgan, has been developing its “JPM Coin” since 2020 as part of its Onyx blockchain initiative. JP Morgan has positioned its stablecoin primarily as a tool for cross-border transactions and payments between financial institutions.

Other companies have already moved forward despite regulatory uncertainty. PayPal launched its PYUSD stablecoin in 2023 and recently announced plans to have 20 million merchants using the product this year.

Ripple secured approval from the New York State Department of Financial Services (NYDFS) in December to launch its RLUSD stablecoin.

The entry of traditional banking giants like Bank of America could trigger major growth in the stablecoin market beyond the current $230 billion valuation. However, Moynihan acknowledged some uncertainty about the full range of applications, stating, “The question of what it’s useful for is going to be interesting.”

White House AI and Crypto Czar David Sacks recently held his first crypto-focused press conference, outlining legislative priorities that include both a markets structure bill and a comprehensive stablecoin bill. These developments suggest that after years of debate, U.S. lawmakers may finally be ready to create a clear pathway to legality for stablecoin issuers.