Bank of America Joins Stablecoin Surge: Major U.S. Banks Bet Big on Crypto

Wall Street’s sleeping giants are finally waking up—and they want a piece of the stablecoin action.

Bank of America just became the latest megabank to signal plans for a dollar-pegged digital asset, following JPMorgan and Citigroup into the crypto fray. Guess those 'blockchain, not Bitcoin' PowerPoints aged like milk.

Why now? Three words: institutional FOMO. With stablecoin transaction volumes hitting $7 trillion last year (yes, trillion with a 'T'), banks can’t afford to watch from the sidelines while fintech eats their lunch.

The real kicker? These are the same institutions that spent years warning clients about crypto’s risks. Now they’re racing to tokenize the very dollars they’ve been guarding for decades. Talk about a plot twist.

One banking exec put it bluntly: 'If you can’t beat ’em, issue a compliant stablecoin and charge settlement fees.' Some things never change.

BoA Signals Entry Into Stablecoin Market

Bank of America is in the early phases of developing its own stablecoin, with plans to integrate the digital asset into its payment infrastructure. CEO Brian Moynihan confirmed during the bank’s second-quarter earnings call that the initiative is focused on leveraging stablecoins as a transactional tool, though he refrained from specifying a launch timeline.

The bank’s objective is to streamline the movement of trillions in daily client assets, with Moynihan suggesting that clients WOULD adopt stablecoin rails if the infrastructure is secure and reliable. 

Addressing the potential for using blockchain-based systems to handle dollar and euro transactions more efficiently, Moynihan stated,

“We believe that if they want to use stablecoins to MOVE part of that money, they’ll move.” 

Collaborative Approach With Peers Under Consideration

Bank of America has reportedly considered joining forces with other major banks, including JPMorgan and Citigroup, for a joint stablecoin issuance. While such a collaboration has not been formalized, it reflects the increasing interest among traditional financial institutions to embrace digital asset frameworks amid broader industry shifts.

Other U.S. banking giants are also exploring stablecoins. Morgan Stanley CFO Sharon Yeshaya noted the bank is actively discussing use cases, while JPMorgan CEO Jamie Dimon confirmed his institution’s intention to be involved. Citigroup CEO Jane Fraser added that her bank is reviewing potential issuance plans for a proprietary Citi stablecoin.

Regulatory Momentum Fuels Institutional Confidence

The timing of BoA’s stablecoin initiative coincides with mounting legislative support for stablecoins in Washington. The GENIUS Act, a key bill aimed at creating a regulatory framework for fiat-pegged digital assets, passed the Senate in June with bipartisan support. However, it stalled in the House earlier this week due to procedural hurdles, though a floor vote is expected shortly.

The Trump administration has prioritized stablecoin regulation as part of its broader crypto policy platform. Progress on this front could significantly accelerate the institutional rollout of stablecoin offerings across the financial sector.

Stablecoins Surging as Internet’s Settlement Layer

Stablecoins, cryptocurrencies designed to maintain parity with fiat currencies like the U.S. dollar, have seen rapid adoption. Their use as a reliable medium of exchange and settlement has grown to the point where 2024’s stablecoin transaction volumes outpaced those of both Visa and Mastercard combined.

As of mid-2025, the total market capitalization of stablecoins has reached $257 billion, nearly double from early 2023. Tether’s USDT and Circle’s USDC collectively dominate over 85% of this market, but the entrance of major banks like BoA could significantly reshape the competitive landscape.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice