Bank Of America CEO Says Company Ready To Enter Stablecoin Business Upon Regulatory Clarity

Bank of America Corp. (NYSE:BAC) CEO Brian Moynihan has signaled the financial services industry’s imminent entry into the crypto economy, highlighting the potential for stablecoins to become a significant part of the banking landscape.

What Happened: In an interview with David Rubenstein at the Economic Club of Washington, D.C. on Tuesday, Moynihan stated, “It’s pretty clear there’s going to be a stablecoin,” indicating Bank of America’s readiness to enter the stablecoin business once it becomes legally permissible, Fortune reported.

He explained that stablecoins are digital assets backed by the U.S. dollar, likening them to “a money market fund with check access or a bank account.”

Moynihan’s comments come as the Trump administration’s crypto-friendly stance has lawmakers working on stablecoin legislation.

The CEO envisioned a future where Bank of America could offer “BofA coins” linked to U.S. dollar deposit accounts, though he noted that the utility of such offerings remains to be seen.

The discussion also touched on Bank of America’s significant investment in technology, with Moynihan revealing that the bank spends about $4 billion annually on new technology and an additional $8-$9 billion on system maintenance.

He highlighted the bank’s early adoption of mobile banking and the success of its AI-powered assistant, Erica, launched in 2018.

Despite the rapid technological advancements, Moynihan emphasized the continued importance of human interaction in banking.

He noted Bank of America maintained about 3,700 branches across the U.S., recognizing that customers still value face-to-face interactions for complex financial matters.

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Why It Matters: This development aligns with broader industry trends, as highlighted in a recent Bernstein report.

While stablecoins have seen significant growth, reaching a market capitalization of approximately $220 billion, their primary use remains within crypto capital markets rather than mainstream payment systems.

The report suggested that stablecoins are gaining traction in cross-border financial transactions and institutional settlements, with major stablecoin issuers now ranking among the top holders of U.S. Treasury securities.

As financial institutions like Bank of America prepare to enter the stablecoin market, the industry anticipates potential regulatory developments, including the possible passage of the Clarity for Payments Stablecoin Act.

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