Bank of America (BofA) CEO Brian Moynihan has stated that the bank is prepared to launch its own stablecoin, but only if regulatory frameworks allow it. Speaking at the Economic Club of Washington, Moynihan emphasized that stablecoins could function like traditional financial assets within the banking system.

Key Takeaways from Moynihan’s Statement

• Bank of America would issue a fully dollar-backed stablecoin if given regulatory approval.
• The BofA stablecoin would work like a bank deposit, allowing seamless conversion between fiat and digital assets.
• Stablecoins resemble money market funds, making them compatible with existing financial products.

Moynihan’s Perspective on Digital Assets

Moynihan categorized digital assets into three main areas:

1. Blockchain technology – Viewed as useful for financial infrastructure.
2. Stablecoins – Considered similar to traditional finance, ready for bank adoption.
3. Bitcoin & Cryptocurrencies – Seen as speculative assets rather than payment solutions.

The Banking Sector’s Shift Toward Crypto Payments

• 98% of money movement is already digital, with BofA processing $3 trillion in digital transactions daily.
• Banks could enter the crypto payments market aggressively if regulations become clear and compliant.
• The Trump administration’s pro-crypto stance could accelerate stablecoin adoption by major banks.

Will Bank of America Enter the Stablecoin Market?

Moynihan’s statements suggest that BofA is ready to compete with USDC and PayPal USD once stablecoin regulations are finalized.

• BofA holds numerous blockchain patents, indicating long-term interest in digital finance.
• With regulatory approval, major U.S. banks could dominate the stablecoin market, integrating crypto payments into everyday banking services.

The Bottom Line: Banking’s Crypto Evolution Has Begun

If stablecoin regulations are clarified, Bank of America and other major financial institutions could launch regulated, bank-backed digital dollars, reshaping the crypto payments landscape.

While crypto-native stablecoins (like USDC and Tether) dominate today, bank-issued stablecoins could rapidly take market share once traditional banks enter the space. If BofA and other banks create fully regulated stablecoins, they could undercut crypto-native options on trust and compliance, making them the default choice for institutional use.