Bank of America estimates that the supply of stablecoins could increase by up to $75 billion over the next year, and traditional financial institutions can no longer avoid the layout. (Background: The U.S. banking industry has joined forces to resist the GENIUS Act, with stablecoins becoming a thorn in the side of the old guard.) (Additional Background: Wyoming has launched the 'first state-level' stablecoin FRNT, what are its features?) Bank of America publicly released a stablecoin report in mid-August, specifically naming the GENIUS Act as bringing regulatory transparency that will drive a surge in stablecoin supply by $25 billion to $75 billion within a year. Regulatory clarity ignites growth. According to Coindesk, the Bank of America report attributes potential growth to two major bills: the GENIUS Act, which establishes clear regulations for issuance and asset custody, and the CLARITY Act, which further defines digital asset classifications. These two bills lower institutional thresholds, allowing insurance companies, funds, and multinational banks to legally hold or issue stablecoins. The Bank of America analysis team believes that the new framework is expected to unleash dormant capital and boost market demand. Application scenarios range from retail to institutional. Progress has already been made on the retail side. E-commerce platform Shopify has introduced USDC as a payment option this year, indicating an increase in acceptance among ordinary merchants. In cross-border payments, personal wire transfer fees are high and the time to receipt is long; in contrast, stablecoins can complete small transfers in minutes and save on transaction fees. On the institutional level, the recent on-chain repurchase demonstration of U.S. Treasury tokens shows that fixed-income transactions can also be settled using stablecoins, reducing reliance on traditional custodial and settlement infrastructure. Money market funds and Treasury bonds are influenced. Stablecoins, which have high liquidity and reward mechanisms, are seen as direct competitors to money market funds. The report notes that Coinbase offers rewards to USDC holders, effectively circumventing the GENIUS Act's prohibition on publicly declaring 'interest,' highlighting that financial products have 'design space.' Since the bill requires reserve assets to be primarily allocated to short-term U.S. Treasury bonds, if the scale of stablecoins increases as predicted, demand for short-term bonds could rise by $25 billion to $75 billion, thereby affecting the structure of Treasury issuance. Traditional banks are shifting strategies. In the face of a new ecosystem, commercial banks are adjusting their pace. Bank of America CEO Brian Moynihan has confirmed that the internal team is developing its own stablecoin, with the launch timing depending on regulatory support and market conditions. The report also mentions that Bank of America is evaluating the introduction of Ripple's RLUSD to reduce cross-border settlement costs. Large institutions like JPMorgan, which had previously expressed reluctance, are also softening their stance, indicating that mainstream players are viewing stablecoins as infrastructure rather than experimental assets. Bank of America concluded that stablecoins have become an unavoidable element of the financial market. As regulations and technology mature, banks, funds, and tech companies will eventually compete and collaborate under common standards. Wall Street may not be able to dictate trends, but it can choose when to join in. The tone of the Bank of America report makes it clear that they have transformed the stablecoin choice into a mandatory question.

#XRP #USDC