Bank of America Teases Stablecoin Launch, Eyes $9B Annual Investment

Bank of America (BoA) has hinted at a potential launch of a stablecoin, subject to regulatory clarity. The financial institution's CEO, Brian Moynihan, expressed his company's interest in issuing a stablecoin for consumers, but emphasized that formal government approval of stablecoins as a legal asset is a prerequisite for BoA's entry into the market.

Moynihan disclosed the plans during a panel session at the Economic Club of Washington, D.C., noting that only one requirement remains for the company to proceed with the launch. He expressed optimism that the US government, under the crypto-friendly Trump administration, would give the green light for stablecoins.

“If they make that legal, we will go into that business,” said Moynihan. While details remain sparse, industry experts suggest that a BoA stablecoin would be linked to US dollar deposit accounts, with potential use cases in local retail and cross-border applications.

BoA, with its $3.3 trillion in assets under management, is expected to be a direct competitor to Circle and Tether, the issuers of top stablecoins in the ecosystem. Moynihan is reportedly eyeing an investment of up to $9 billion each year for a stablecoin system, which he described as having an "unbelievable" impact.

Meanwhile, there is consensus in the cryptocurrency industry that US regulators are inching toward full approvals for stablecoins. Industry players are eager for approvals, but stablecoin issuers are bracing for stringent regulations. Sources suggest that the incoming rules will mandate stablecoin issuers to seek registrations in the US.

Circle CEO Jeremy Allaire supports the proposal, while Tether's top brass view the move as an attempt to stifle the Hong Kong-based outfit. Circle, having secured approvals in Dubai and Canada, is confident of clinching US approval, while Tether has faced regulatory troubles in Europe.