Financial institution of America is within the early phases of exploring stablecoins, aiming to leverage blockchain know-how to reinforce its cost infrastructure.
Through the financial institution’s second-quarter earnings name, CEO Brian Moynihan addressed questions on BoA’s stablecoin technique, noting that the preliminary focus is “on stablecoins as a transactional system.”
Stablecoin-based cost rails might assist BoA transfer the trillions of {dollars} in consumer belongings that circulation via its programs every day.
“We imagine that in the event that they need to use stablecoins to maneuver a part of that cash, they’ll transfer,” Moynihan said, referring to stablecoin programs that transfer US {dollars} and euros.
“We’ve performed a variety of work. We’re nonetheless making an attempt to determine how large or small it’s due to a number of the locations usually are not large quantities of cash motion. So that you’d anticipate us all to maneuver,” he stated.
BoA has been actively exploring stablecoin use since at the least early 2025, with Moynihan saying at a convention in Could that the bank would move forward if supportive laws is enacted. The financial institution has reportedly thought of issuing a stablecoin jointly with different banking giants, reminiscent of JPMorgan and Citigroup.
BoA reported blended monetary leads to the second quarter. Internet revenue climbed 3% to $7.12 billion, exceeding forecasts, whereas income rose roughly 4% to $26.61 billion, falling barely wanting expectations.
Associated: Legacy finance discovers stablecoins as JPMorgan, Citigroup consider market entry
Stablecoin market accelerates as GENIUS Act hits a snag
The stablecoin market is rising quickly, with trade observers more and more viewing fiat-pegged belongings because the rising “default settlement layer” for the web. As Cointelegraph reported, stablecoin transaction volumes surpassed these of Visa and Mastercard mixed in 2024.
Since then, the entire worth of stablecoins in circulation has surged to $257 billion, almost double the quantity in the beginning of 2023. Tether’s USDt (USDT) and Circle’s USDC (USDC) account for greater than 85% of the stablecoin market mixed.
The rising alternative has prompted the administration of US President Donald Trump to make stablecoin laws a precedence, chief amongst them being the GENIUS Act.
Though the invoice gained bipartisan support in the Senate Banking Committee and handed the Senate in June, it, together with different crypto measures, stalled within the Home of Representatives after a bunch of lawmakers blocked a key procedural vote on Tuesday.
The GENIUS Act is predicted to go to a ground vote within the Home by Thursday.
Associated: Crypto Biz: Meta’s AI bet, Fortune 500’s stablecoin push
