Bank of America to Enter Stablecoin Market

Bank of America has announced it is getting ready to enter the stablecoin market after initially slow progress due to regulatory uncertainty.

CEO Brian Moynihan made the announcement on July 16 during an earnings call in New York, amid a suite of digital asset regulation that is making its way through Congress.

Moynihan said the bank is working on developing a stablecoin but stopped short of giving a timeline of its launch.

“We feel both the industry and ourselves will have responses. We've done a lot of work,” he said, adding that Bank of America was trying to gauge client demand and appropriate partnerships with other players to make the digital asset a reality.

"We are still trying to figure out how big or small it is, because in some places there are not big amounts of money movement. So you would expect us all to move, our company to move on that,” he said.

Bank of America’s announcement came amid a series of three crypto-related bills that are moving through Congress. The first and most highly anticipated act, the GENIUS Act, was passed late last week and sets a regulatory regime for stablecoins.

As the regulatory environment clarifies, several other major US banks have moved into the stablecoin market. JPMorgan Chase, the country’s largest bank by assets, launched JPMD, a deposit token on Coinbase’s Base blockchain for institutional clients.