Bank of America Explores Stablecoins for Trillion-Dollar Transactions
Bank of America (BoA) is evaluating the use of stablecoins to modernize its payment systems with blockchain technology. During the bank’s second-quarter earnings call, CEO Brian Moynihan outlined plans to leverage stablecoins primarily for transactions. This move could transform how the bank handles trillions in daily client asset transfers by introducing faster, more efficient processes.
Strategic Focus on Stablecoin Integration
Moynihan emphasized stablecoins’ potential for transferring US dollars and euros efficiently, showing BoA’s adaptability to client needs. The bank’s interest in stablecoins isn’t new; discussions began in early 2025. BoA has explored collaborations with financial leaders like JPMorgan and Citigroup to potentially issue a stablecoin together.
Stablecoin Market Expansion
The stablecoin market has grown significantly, with Tether’s USDt and Circle’s USDC dominating over 85% of the market. Circulation values have soared to $257 billion, nearly doubling since early 2023. This growth highlights stablecoins’ rising role in global finance.
Legislative Progress and Hurdles
The US administration, under President Donald Trump, has made stablecoin regulation a priority, focusing on the GENIUS Act. Despite bipartisan Senate support and passage in June, the bill stalled in the House of Representatives. A House floor vote is expected soon, which could provide much-needed regulatory clarity for stablecoins.
Key Highlights
- BoA is testing stablecoins to upgrade payment systems.
- CEO Brian Moynihan sees stablecoins as key for transactions.
- Stablecoins may streamline trillions in client asset movements.
- Tether’s USDt and Circle’s USDC lead the stablecoin market.
- The GENIUS Act aims to establish stablecoin regulations.
