Financial institution of America is taking early steps to discover stablecoins as a method to modernize its fee techniques and deal with trillions of {dollars} in consumer transactions extra effectively, the lender’s CEO, Brian Moynihan, mentioned throughout the financial institution’s second-quarter earnings name on July 15.
Moynihan emphasised that the agency’s present focus is on utilizing stablecoins “as a transactional machine,” noting their potential to streamline how cash strikes by the financial institution’s infrastructure every day.
He added that the financial institution has already executed substantial groundwork and is evaluating how scalable the chance could also be throughout varied transaction varieties.
Whereas the scale of the stablecoin market stays comparatively small in comparison with conventional banking flows, Moynihan signaled that broader adoption could come as regulatory readability improves.
The financial institution has been assessing the area since early 2025 and has reportedly mentioned the potential joint issuance of a stablecoin with different main U.S. establishments, together with JPMorgan and Citigroup.
Stablecoin development outpaces conventional networks
The announcement comes amid a broader shift in legacy finance towards stablecoin-backed fee rails. In 2024, stablecoin transaction volumes surpassed the mixed totals of Visa and Mastercard.
Since then, the worth of stablecoins in circulation has surged to $257 billion, practically double the extent from early 2023. Tether’s USDT and Circle’s USDC now make up over 85% of that whole.
US lawmakers have responded to the sector’s fast rise by pushing for a clearer regulatory framework. The GENIUS Act, the centerpiece of the present administration’s digital asset agenda, handed the Senate in June with bipartisan help.
Nonetheless, the invoice stalled within the Home this week after lawmakers blocked a procedural vote. A flooring vote is anticipated by July 17.
As main establishments more and more flip to blockchain-based rails, Financial institution of America’s cautious however lively strategy alerts that Wall Road’s largest gamers could also be making ready to make stablecoins a cornerstone of future settlement techniques.