Bank of America CEO confirms exploration of stablecoin business, emphasizing trading functionality as core.
Bank of America CEO Brian Moynihan confirmed on Wednesday (7/16) during the second-quarter earnings call that the bank is preparing to enter the stablecoin market and stated that the bank has completed significant preparatory work and will take action when the timing is right.
Moynihan stated, 'We believe the entire industry and ourselves will respond, and we have done a lot of work.' He emphasized that Bank of America's current focus is to use stablecoins 'as a trading tool,' leveraging blockchain technology to enhance its payment infrastructure.
Bank of America processes trillions of dollars in customer asset flows daily, and stablecoin payment channels are expected to help banks handle these massive transaction volumes more efficiently.
Moynihan pointed out, "We believe if customers want to use stablecoins to transfer some funds, they will adopt this method." However, he also admitted that banks are still assessing the scale of this opportunity and the level of customer demand, "because there is not a large flow of funds in certain areas."
Wall Street giants join forces, three major banks are rumored to collaborate on issuance.
According to reports, Bank of America has been actively exploring stablecoin applications since early 2025, with Moynihan stating in a meeting in May that if supportive legislation is passed, the bank will advance related plans. Sources revealed that Bank of America has considered collaborating with other banking industry giants to jointly issue stablecoins, with partners including JPMorgan and Citigroup.
JPMorgan CEO Jamie Dimon stated on Tuesday that while he personally doubts the practicality of stablecoins, the bank will 'participate' in deposit coins and other stablecoin businesses. Citigroup CEO Jane Fraser also confirmed that the company is exploring its own digital dollar scheme.
Further reading
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Moynihan stated that Bank of America may collaborate with other companies to launch stablecoins, but will only act once customer demand becomes clearer. He believes this demand is still gradually emerging, and the bank needs more time to assess market potential.
This collaborative model reflects traditional financial institutions' cautious attitude towards the stablecoin market, while also showing that large banks hope to share risks and increase market acceptance through joint actions.
The stablecoin market is growing rapidly, with trading volumes surpassing traditional payment networks.
The stablecoin market is experiencing rapid growth, and industry observers increasingly view fiat-backed assets as the emerging 'default settlement layer' of the internet. In 2024, stablecoin trading volume has surpassed the combined total of Visa and Mastercard, showcasing the enormous potential of digital payment channels.
According to data from CoinGecko, the total value of stablecoins in circulation has surged to $264.2 billion, nearly doubling since early 2023. Tether's $USDT and Circle's $USDC together account for over 85% of the stablecoin market share, forming a dual oligopoly.
Source: CoinGecko The total value of stablecoins in circulation has surged to $264.2 billion.
This rapid growth prompted the Trump administration to prioritize stablecoin legislation, with the (GENIUS Act) seen as a core bill. The bill passed with bipartisan support in the Senate in June but faced obstacles in the House this week, as a group of lawmakers blocked a crucial procedural vote.
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As major institutions lean increasingly towards using blockchain-based payment channels, Bank of America's cautious yet proactive attitude indicates that the largest players on Wall Street may be preparing to make stablecoins a cornerstone of future settlement systems.
Regulatory outlook affects business advancement, banks are waiting for clearer legislation.
Although the stablecoin market is still relatively small compared to traditional banking industry transaction volumes, Moynihan hinted that broader adoption may come with increased regulatory transparency. Bank of America's earnings report showed a 3% growth in net profit to $7.12 billion, exceeding expectations, with revenue growth of about 4% to $26.61 billion, slightly below expectations.
Bank of America has been evaluating the stablecoin industry since early on, and the bank's strategy reflects a cautiously optimistic attitude of traditional financial institutions towards emerging digital assets. As the regulatory environment gradually clarifies, it is expected that more large banks will follow suit, driving stablecoins to become part of mainstream financial infrastructure.
‘Bank of America considers entering the stablecoin market! Reportedly collaborating with JPMorgan and Citigroup, just waiting for clearer legislation.’ This article was first published in 'Crypto City'.
