Bank of America (BoA) is delving into the world of stablecoins with an aim to harness the power of blockchain for improving its payment ecosystem. The bank’s Chief Executive Officer, Brian Moynihan, made this revelation during its Q2 earnings call, where he addressed BoA’s stablecoin strategy.
Moynihan highlighted that the primary objective is to utilize stablecoins as transactional tools. This innovation could enable BoA to manage the massive amount of client assets that traverse its systems daily. “If our clients wish to utilize stablecoins for transferring part of their money, they’ll certainly proceed,” Moynihan commented.
BoA has been investigating the potential uses of stablecoins since as early as 2025. Moynihan previously shared at a May conference that the bank would progress if beneficial legislation is implemented. Reports suggest that the bank might consider launching a stablecoin in partnership with other banking behemoths such as JPMorgan and Citigroup.
The growth of the stablecoin market is accelerating, with industry experts increasingly considering these fiat-pegged assets as the upcoming “default settlement layer” for the internet. In 2024, stablecoin transaction volumes exceeded the combined volumes of Visa and Mastercard. Currently, the total value of circulating stablecoins is a staggering $257 billion, nearly double the value at the start of 2023. Two giants, Tether’s USDt (USDT) and Circle’s USDC (USDC), represent over 85% of the total stablecoin market.
These developments have led to the US government prioritizing stablecoin legislation, with the GENIUS Act being the most significant. Despite enjoying bipartisan support and being passed in the Senate, the bill, along with other crypto measures, hit a hurdle in the House of Representatives. However, the GENIUS Act is set for a House floor vote by Thursday.
