Bank of America Ready to Launch Stablecoin as Congress Moves Forward on Crypto Rules

“If they make that legal, we will go into that business,” Moynihan said at the Economic Club of Washington, D.C. in February. The bank has been developing the technology and preparing for launch, waiting only for Congress to provide clear regulatory guidelines.

During a July earnings call, Moynihan provided more details about the bank’s approach. “We’ve done a lot of work,” he told analysts. “We’re figuring out how big or small it should be. But we’re moving.”

The bank plans to create what Moynihan describes as seamless movement between traditional bank deposits and digital stablecoins. Customers would be able to convert between “a Bank of America coin and a U.S. Dollar deposit” easily.

This approach builds on Bank of America’s existing digital infrastructure. The bank already serves 40 million digital customers and processes 90% of its customer interactions online. With $2.5 trillion in deposits and 66 million customers, Bank of America has significant scale advantages over current stablecoin providers.

Bank of America isn’t alone in recognizing the stablecoin opportunity. Several other major banks are making similar moves:

JPMorgan Chase launched JPMD, a deposit token on Coinbase’s Base blockchain for institutional clients. CEO Jamie Dimon, previously a crypto skeptic, now says his bank will be involved in both deposit tokens and stablecoins.

Citigroup CEO Jane Fraser has confirmed her bank is considering a Citi stablecoin for digital payments. Morgan Stanley is also “actively discussing” stablecoin potential, according to CFO Sharon Yeshaya.

A group of major banks including Wells Fargo and PNC recently met to discuss creating a collaborative stablecoin network, similar to how they created Zelle for instant payments.

The push for Bank of America’s stablecoin launch depends on federal legislation that’s currently moving through Congress. The GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins) passed the Senate with a 68-30 vote in June and is now heading to the House for final approval.

This legislation would create the first comprehensive federal framework for stablecoin regulation in the United States. Key requirements include:

• Full backing by U.S. dollar reserves
• Monthly audits to verify reserves
• Anti-money laundering compliance
• Federal or state regulatory oversight

The bill allows banks like Bank of America to issue stablecoins through subsidiaries, giving them a clear legal path forward. Senate Banking Committee Chairman Tim Scott has committed to passing stablecoin legislation within the Trump administration’s first 100 days.

If legislation passes as expected, Bank of America could launch its stablecoin by mid-2026. Industry analysts project the overall stablecoin market could reach $400 billion by 2026, with some forecasts suggesting growth to $2.8 trillion by 2028.

For Bank of America, stablecoins offer new revenue opportunities in cross-border payments and business transactions. Companies already use stablecoins to pay international invoices and manage treasury operations more efficiently.

The bank’s stock trades at a discount to peers like JPMorgan, partly due to investor skepticism about its digital strategy. A successful stablecoin launch could help close this gap.

The next few months will be critical as Congress finalizes stablecoin legislation and banks position themselves for what could be the biggest change in digital payments since online banking began.