- Bank of America may launch a dollar-backed stablecoin if federal regulators approve clear rules for digital assets.
- US lawmakers aim to pass stablecoin regulations by 2025 after years of stalled political debates.
- Tether (USDT) and USD Coin (USDC) dominate the $229 billion stablecoin market with an 86% combined share.
Bank of America is preparing to enter the stablecoin market with a dollar-backed digital currency. CEO Brian Moynihan revealed the plans during a recent interview at the Economic Club of Washington D.C., stating that the bank could issue a token tied directly to U.S. dollar deposits.
Moynihan described stablecoins as digital equivalents of traditional currency holdings, comparing their utility to bank accounts or money market funds. However, he clarified that the project hinges on federal approval, as the U.S. has yet to finalize laws governing such assets.
Federal efforts to regulate stablecoins are underway, with lawmakers signaling potential action by 2025. Previous attempts to pass legislation stalled under the last administration, but recent moves by policymakers suggest renewed focus.
A recent executive order from the White House directs federal agencies to develop rules for digital assets, emphasizing support for dollar-linked stablecoins to strengthen global use of the currency. Analysts view this as a step toward formalizing oversight, which could encourage institutional participation.
If regulations materialize, Bank of America would face established rivals. Tether’s USDT and Circle’s USDC collectively control over 86% of the $229 billion stablecoin market. Smaller contenders like Dai and PayPal’s PYUSD hold narrower shares but maintain active user bases.
BofA’s entry would mark the first major U.S. bank to issue a stablecoin, leveraging its existing customer base and deposit infrastructure. Still, gaining ground against incumbents would require addressing trust and adoption barriers in a market dominated by crypto-native brands.
Moynihan’s comments reflect growing institutional interest in blockchain-based financial tools, even as regulatory clarity remains incomplete. The bank’s move could signal broader acceptance of digital currencies by traditional finance, provided lawmakers establish clear guidelines.
For now, the future of BofA’s stablecoin depends on political will—a reminder that even large institutions must navigate the uncertain terrain of evolving policy.
