Bank Of America Will Likely Issue Its Very Own Stablecoin If Regulations Allow, Says CEO

America’s second-largest bank, Bank of America, has hinted at plans to launch its USD-backed stablecoin if comprehensive legislation is passed. Bank of America would potentially become the first major bank to embrace digital currencies for payments and transfers.

A “Bank Of America Coin”

Speaking with businessman David Rubenstein on Tuesday at The Economic Club of Washington, D.C., Bank of America CEO Brian Moynihan indicated that it’s only a matter of time before the commercial bank debuts its stablecoin.

“It’s pretty clear there’s going to be a stablecoin which is going to be fully dollar-backed,” Moynihan responded when asked whether he thought physical cash would be fully eradicated in favor of a fully digital economy.

“If they make that legal we’ll go into that business,” Moynihan said, referencing the ongoing legislative efforts on Capitol Hill. He referred to the bank’s would-be stablecoin as “Bank of America Coin,” noting that it would be linked to customer deposit accounts.

“So you’ll have a Bank of America coin and a U.S. Dollar deposit and we’ll be able to move them back and forth because now it hasn’t been legal for us to do it but it’s just like another foreign currency,” Moynihan said.

The BofA boss also highlighted three distinct classes in the digital asset space: blockchain technology, stablecoins, and Bitcoin and other crypto assets. His focus was on stablecoins, stating that these assets would function similarly to existing financial instruments.

“It’s no different than a money market fund with check access…is no different than a bank account,” he said.

Last month, Moynihan stated that “the banking system will come in hard on the transactional side” of stablecoins if legislation is enacted. They would find expansive use in payments, he quipped.

Stablecoin Legislation Coming Within President Trump’s First 100 Days?

Despite lawmakers proposing stablecoin regulatory bills for years without any concrete progress, stablecoins have ballooned into a $230 billion industry.

To the dismay of some lawmakers, prominent payment companies, such as PayPal, have forayed into the stablecoin market without clear rules for the road. The firm debuted its U.S. dollar-pegged PYUSD stablecoin in 2023, and it quickly topped $1 billion in market capitalization. Ripple, the blockchain company behind XRP, also debuted its Ripple USD (RLUSD) stablecoin in mid-December 2024.

Regardless, many expect stablecoins to thrive under President Donald Trump’s leadership as clearer regulatory guidelines are formulated to utilize overcollateralized dollar-pegged tokens to extend US dollar dominance internationally and attract stablecoin companies to the world’s largest economy.

Earlier in January, Senate Banking Committee Chairman Tim Scott (R-SC) said one of his first priorities is to get legislation on stablecoins passed by the end of Trump’s first 100 days in office, suggesting that adoption of the fiat-backed assets is well on its way.

Meanwhile, Tether’s USDT remains the world’s largest stablecoin and the third-largest digital asset, with a $141.9 billion market cap. According to CoinGecko data, USDT alone makes up over 60% of the total stablecoin market cap.