- Ripple’s RLUSD stablecoin is emerging as a top contender for Bank of America’s stablecoin strategy due to its strong regulatory compliance, institutional backing, and interoperability with Ethereum and the XRP Ledger.
- With growing ties between Ripple and Bank of America and the recent passage of the GENIUS Act, RLUSD could play a central role in the bank’s future digital asset initiatives.
Ripple’s U.S.-backed stablecoin, RLUSD, is rapidly gaining traction, and may be at the center of Bank of America’s stablecoin ambitions. With the recent passage of the GENIUS Act providing regulatory clarity, the financial giant has confirmed it’s exploring options in the stablecoin market.
Industry experts now suggest that Ripple’s RLUSD may be the most viable choice for Bank of America due to its strong compliance foundation and cross-chain capabilities.
Speaking on July 16, 2025, Bank of America CEO Brian Moynihan stated that the bank has completed significant internal research on launching a U.S. dollar-pegged stablecoin, backed by cash and short-term U.S. Treasury securities. However, he emphasized that the bank is waiting for clearer regulatory signals before making any definitive moves.
INTEL: Bank of America says many banks are preparing to launch crypto stablecoins
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While Moynihan didn’t name RLUSD directly, many in the crypto space, including investor Paul Barron, believe RLUSD offers a ready-made, regulatory-compliant solution that aligns perfectly with Bank of America’s conservative risk posture.
RLUSD, founded in New York under the stringent New York Department of Financial Services (NYDFS) framework, benefits from institutional-grade custody via BNY Mellon and supports both Ethereum and the XRP Ledger. This interoperability makes it well-suited for multi-chain financial operations, and its market capitalization has grown by more than 30% over the past month, now exceeding $500 million.
The connection between Ripple and Bank of America isn’t new. The two entities have collaborated since at least 2019, with internal patents and pilot projects pointing to Ripple’s distributed ledger technology being tested for interbank settlements.
Notably, Bank of America has reportedly processed internal transactions using XRP, highlighting the institution’s long-term interest in blockchain-based liquidity solutions, particularly in areas such as cross-border payments and real-time settlement.
RLUSD’s existing integrations with RippleNet, which already connects with major banks like American Express and Banco Santander, offer Bank of America a low-friction path toward a compliant, scalable stablecoin solution. If U.S. banks adopt a shared infrastructure for stablecoin transactions, RLUSD’s head start could give it a competitive edge.
Adding to the urgency is the broader industry momentum. JPMorgan is expanding its JPM Coin initiative, while Citigroup is considering its own stablecoin and tokenized deposits. The passage of the GENIUS Act, which creates a clear legal framework for stablecoins, has become a catalyst for these developments, pushing institutions to solidify their crypto strategies.
As Bank of America refines its approach, RLUSD stands out as a compelling candidate, offering regulatory clarity, technical maturity, and institutional partnerships. If chosen, it could mark a pivotal moment not just for Ripple, but for the broader U.S. stablecoin ecosystem.
