Bank of America (BAC) anticipates the introduction of stablecoins amidst growing industry interest, stated CEO Brian Moynihan on Wednesday, without specifying a timeline. Morgan Stanley, on the other hand, is still weighing its options.
“A considerable amount of work has been done and we believe both the industry and ourselves will present suitable solutions,” stated Moynihan, CEO of the US’s second-largest bank. “We are still assessing the magnitude of this development as in some areas, the movement of large sums of money isn’t occurring. Hence, it is likely that we, along with others, will gravitate towards this,” Moynihan informed analysts during a post-earnings conference call.
Stablecoins are a unique form of cryptocurrency designed to hold a steady value, usually tied to a fiat currency such as the US dollar. They are frequently used by cryptocurrency traders for fund transfers between tokens.
Bank of America is still gauging client demand, which is currently not high, and plans to launch a stablecoin when the timing is right, possibly in collaboration with other entities. U.S. President Donald Trump has pledged to be the “crypto president,” promoting its widespread use in the nation.
In the meantime, Morgan Stanley, a Wall Street lender, stated that it is still considering its options. Chief Financial Officer Sharon Yeshaya mentioned that the bank is closely following the progress of stablecoins.
“We are actively discussing it, assessing both the current landscape and potential uses for our client base. However, it’s still too early to tell, especially considering the nature of our operations versus those of our competitors, how a stablecoin would fit in,” she added.
