Key Points
- Bank of America’s CEO confirmed the bank is developing its own stablecoin.
- Other major Wall Street banks, including Citigroup and JPMorgan Chase, are also exploring or planning to get involved in stablecoins.
- The banks are moving cautiously, waiting for more legal and regulatory clarity from the U.S. government.
- Bank of America’s CEO noted that current client demand for a stablecoin is not yet high.
Bank of America is working to launch its own stablecoin, according to CEO Brian Moynihan. He confirmed on Wednesday that investors can expect the major bank to move forward with cryptocurrency. However, he didn’t provide a specific timeline.
Stablecoins are a type of digital currency designed to maintain a steady value, often by being pegged to a fiat currency, such as the U.S. dollar. They are commonly used in the crypto world to move funds between different tokens.
Speaking to analysts, Moynihan said the bank is still trying to figure out the potential market size, noting that client demand isn’t high at the moment. He explained that they would roll out the stablecoin at the right time, likely with partners. A key reason for the slow progress, he added, is that banks are still awaiting clear legal and regulatory guidelines from the government.
The move comes as the U.S. political environment becomes more crypto-friendly. President Donald Trump has called himself the “crypto president,” and Congress is expected to advance several bills this week that could provide a regulatory framework for digital assets, including stablecoins.
Other major banks are also paying close attention. Citigroup’s CEO, Jane Fraser, said her bank is considering issuing its own stablecoin, describing it as a “good opportunity.” Even longtime crypto skeptic Jamie Dimon of JPMorgan Chase confirmed that his bank will be involved. At the same time, Morgan Stanley stated that it is closely watching the developments.
