Bank of America (BoA) is in the early stages of exploring stablecoins, aiming to leverage blockchain technology to enhance its payment infrastructure. CEO Brian Moynihan discussed plans during the second-quarter earnings call.
Bank of America's Stablecoin Strategy
During the bank's second-quarter earnings call, CEO Brian Moynihan addressed questions about BoA’s stablecoin strategy. He noted that the initial focus is on stablecoins as a transactional device: 'We believe that if they want to use stablecoins to move part of that money, they’ll move.' The bank has been actively exploring stablecoin use since at least early 2025 and is prepared to move forward if supportive legislation is enacted.
Growth of the Stablecoin Market
The stablecoin market is growing rapidly, with transaction volumes in 2024 surpassing those of Visa and Mastercard combined. The total value of stablecoins in circulation has surged to $257 billion, nearly double the amount at the beginning of 2023. Major players in this market, such as Tether and Circle, account for over 85% of the total market.
Legislative Initiatives and Obstacles
The growing opportunity has prompted the administration of US President Donald Trump to prioritize stablecoin legislation, with the GENIUS Act being a key focus. Although the bill gained bipartisan support in the Senate and passed in June, it has faced obstacles in the House of Representatives. The GENIUS Act is expected to go for a floor vote in the House by Thursday.
Bank of America continues to explore the potential of stablecoins to optimize its financial operations. Given the market growth and legislative obstacles, the future of stablecoins appears promising.
