Nikolas Sargeant
Bank of America CEO Brian Moynihan revealed Wednesday that the nation's second-largest bank has conducted extensive preparation for its own stablecoin launch but remains cautious about timing amid current market conditions. The announcement provides insight into the bank's strategic approach to digital currency adoption.
"We feel both the industry and ourselves will have responses. We've done a lot of work," Moynihan told Reuters, indicating that investors can expect the bank to move forward with stablecoin offerings in the near future. However, he emphasized that the timeline remains uncertain pending improved market conditions.
The bank initially announced its dollar-pegged stablecoin intentions in February, with Moynihan stating at the time that regulatory developments would significantly influence adoption timelines. "It's pretty clear there's going to be a stablecoin," he confirmed, contingent on supportive legal frameworks.
Strategic Timing Depends on Market Readiness
Moynihan stressed that Bank of America prioritizes understanding customer demand before proceeding with stablecoin deployment. Current client interest levels remain insufficient to justify immediate launch, according to the CEO's assessment.
"[The bank] would roll out a stablecoin at an appropriate time, likely in partnership with other players," Moynihan explained. The measured approach reflects broader industry caution as financial institutions await clearer regulatory guidance before committing to digital currency initiatives.
Progress has been slower than some investors anticipated, with banks collectively waiting for legal clarity to emerge. This cautious stance underscores the complex regulatory environment surrounding stablecoin development and implementation.
The timing coincides with renewed legislative momentum on Capitol Hill. President Trump announced Wednesday that 11 of 12 House representatives have agreed to support the GENIUS Act, legislation establishing a regulatory framework for stablecoins. This development follows Tuesday's 196-222 House vote against advancing the bill, temporarily stalling broader crypto legislative progress.
Major Banks Coordinate Stablecoin Strategies
Bank of America's stablecoin development occurs alongside similar initiatives from major competitors. Citigroup announced Tuesday its plans for proprietary stablecoin offerings as part of a comprehensive crypto strategy encompassing reserve management and custody services.
"We are looking at the issuance of a Citi stablecoin. This is a good opportunity for us," said Citigroup CEO Jane Fraser. The bank's approach includes exploring stablecoin reserve management alongside developing crypto custody capabilities for institutional clients.
Morgan Stanley is also monitoring stablecoin developments closely, according to CFO Sharon Yeshaya. The bank is evaluating potential use cases and client benefits from stablecoin integration, though specific implementation plans remain preliminary.
"But, it really is a little early to tell, especially for the businesses we run versus businesses that you might see from competitors, on how a stablecoin would play in," Yeshaya noted, reflecting the industry's cautious approach to digital currency adoption.
Industry Coordination and Partnership Potential
Moynihan's emphasis on potential partnerships suggests coordinated industry efforts rather than independent development. This collaborative approach could accelerate stablecoin adoption while reducing individual institution risks and development costs.
The partnership strategy aligns with previous reports indicating major banks, including JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo, have explored shared stablecoin initiatives. Such coordination could establish industry standards and enhance regulatory compliance.
As legislative frameworks evolve and client demand increases, Bank of America appears positioned to rapidly deploy its stablecoin capabilities. The bank's extensive preparation work suggests readiness to capitalize on favorable market conditions once regulatory clarity emerges and customer interest intensifies.
