Bank of America CEO Discusses Potential BofA Stablecoin

Key Takeaways:

• Bank of America is open to launching stablecoins tied to the U.S. dollar, contingent on regulatory approval and clear legal frameworks.
• The bank continues to invest heavily in digital tools and technology while maintaining the importance of in-person services for complex financial needs.
• Shifting regulatory sentiment is prompting major banks, including Bank of America, to explore deeper involvement in cryptocurrency and blockchain technologies.

Bank of America CEO Brian Moynihan has said the financial services industry is on the verge of entering the crypto economy, signaling a potential shift in how major banks engage with digital assets.

On Tuesday, Moynihan addressed the role of stablecoins and how regulatory developments could shape their adoption at the Economic Club of Washington, D.C.

“It’s pretty clear there’s going to be a stablecoin,” Moynihan said in an interview with David Rubenstein, co-founder of private equity firm The Carlyle Group.

Bank of America (BofA) CEO Says Financial Industry Is Moving Toward Crypto Economy

According to Fortune News, he described stablecoins as digital assets similar to Bitcoin but backed by the U.S. dollar, comparing them to money market funds with check access or a bank account.

Moynihan stated that Bank of America would consider entering the stablecoin business if legal frameworks allowed it.

Under the current administration, lawmakers have been exploring legislation to regulate stablecoins. This could allow traditional banks to issue their own digital currencies.

“If they make that legal, we will go into that business,” he said, hinting at the possibility of a “BofA coin” linked to a U.S. dollar deposit account.

However, he noted that the practical use cases of stablecoins within banking remain a key question.

JUST IN: 🇺🇸 Bank of America to launch USD-pegged crypto stablecoin if lawmakers pass legislation, CEO says.

"It's pretty clear there's going to be a stablecoin, which is going to be a fully dollar-backed… it's no different than a bank account." pic.twitter.com/1037mdZOkV

— Watcher.Guru (@WatcherGuru) February 26, 2025

Beyond digital currency, Moynihan discussed how technology is reshaping the banking sector.

Bank of America invests approximately $4 billion annually in new technology and another $8 to $9 billion in maintaining its systems.

He highlighted the bank’s early adoption of digital tools, such as launching a mobile banking app for iPhones ahead of its competitors and developing the AI-powered virtual assistant, Erica, in 2018.

With digital banking now dominating customer interactions, Moynihan said 90% of the bank’s engagements with clients in the past year occurred through online and mobile channels.

Despite this, he emphasized the continued importance of in-person banking.

Notably, Bank of America still operates around 3,700 branches across the U.S., and Moynihan believes a physical presence remains essential for services that require human guidance.

“There’s a critical importance of a person going into one of our branches and saying, ‘I need help creating a financial plan’ or ‘I need assistance managing a family member’s affairs,’” he said.

While the industry is moving toward digital solutions, Moynihan stressed the balance between technological advancements and personal service.

“You’ve got to do both,” he said.

Moynihan’s comments reflect a broader trend among major financial institutions.

As regulatory attitudes evolve, other major U.S. banks are also reconsidering their approach to digital assets.

Wall Street Banks Move Toward Crypto as Regulatory Climate Shifts

In January 2025, for example, JPMorgan Chase expanded its blockchain-based payment network, Liink, to include cross-border crypto transactions.

The bank also partnered with Kinexys to integrate blockchain solutions for institutional clients, enhancing transaction efficiency and transparency.

Similarly, Standard Chartered Bank completed a successful pilot of Mastercard’s Multi-Token Network (MTN) in May 2024,, which facilitates secure and scalable digital asset transactions.

Additionally, in February 2025, the Federal Deposit Insurance Corporation (FDIC) announced plans to adopt a more open approach toward banks engaging with crypto.

With regulatory clarity and official encouragement, BofA executives see an opportunity to generate advisory and underwriting fees.

In January, Moynihan had also signaled the bank’s willingness to embrace crypto payments—provided clear rules are in place.

Speaking at the World Economic Forum in Davos, he proposed that crypto transactions, once properly regulated, could be incorporated into the banking system alongside credit cards and Apple Pay.

“We have hundreds of patents on blockchain already,” Moynihan noted, emphasizing the bank’s preparedness.

For years, regulatory uncertainty kept investment banks at arm’s length, especially after crypto-friendly lenders like Silvergate and Signature Bank collapsed.

However, President Donald Trump’s administration is creating a more favorable regulatory environment.

🇺🇸 @realDonaldTrump has teased upcoming plans to position the US as the "crypto capital of the planet," with hints of collaboration with @worldlibertyfi. Here's the latest. #Cryptocurrency #USPresidentialElectionshttps://t.co/xasXQCdjJ5

— Cryptonews.com (@cryptonews) August 29, 2024

Notably, the establishment of the latest SEC task force, led by crypto-friendly Commissioner Hester Peirce, and discussions of a potential national Bitcoin reserve are fueling optimism.

As a result, Wall Street banks, including Morgan Stanley, RBC, and BofA, are reassessing their crypto strategies.

With IPOs from firms like Gemini, Kraken, and Circle back on the table, banks are positioning themselves for the next wave of digital asset adoption.

The potential entry of established financial institutions like Bank of America into the stablecoin market represents a big shift in the cryptocurrency industry.

As regulatory frameworks continue to evolve under the current administration, the integration of traditional banking with blockchain technology could fundamentally transform how Americans conduct financial transactions.

For consumers, the advent of a Bank of America stablecoin could eventually mean greater access to faster, more efficient payment systems while maintaining the security and trust associated with established banking institutions.

Frequently Asked Questions (FAQs)

What are the potential benefits of Bank of America entering the stablecoin market?

Bank of America’s entry into the stablecoin market could provide faster, cheaper transactions, enhance cross-border payments, and position the bank as a leader in digital financial services.

How might the introduction of stablecoins impact traditional banking services?

The introduction of stablecoins could streamline traditional banking services by enabling instant settlements, reducing transaction costs, and improving accessibility for underbanked populations.

What regulatory challenges could Bank of America face in launching a stablecoin?

Regulatory challenges include the need for clear legal frameworks, reserve requirements, compliance with anti-money laundering (AML) standards, and addressing potential risks like market instability or fraud.

How do stablecoins compare to other digital currencies like Bitcoin?

Stablecoins differ from Bitcoin in that they are pegged to stable assets like fiat currency. This makes them less volatile and more suitable for everyday transactions than Bitcoin’s investment-focused use case.

What are the main use cases for stablecoins in the financial industry?

Key use cases for stablecoins include cross-border payments, remittances, decentralized finance (DeFi) activities like lending and borrowing, payroll solutions, and financial inclusion for underserved communities.

Source: cryptonews.com