Bank of America Eyes Stablecoins to Power Daily Trillions in Client Transactions

Bank of America, one of the most established names in global finance, is quietly making a move that could redefine how money moves across borders. In a recent earnings call, CEO Brian Moynihan acknowledged that the bank is exploring stablecoins, a blockchain-based innovation, as part of its evolving payment infrastructure.

It’s not just a technology play. With trillions of dollars flowing through its systems daily, BoA is eyeing a future where stablecoins could be used to streamline transactions, reduce settlement times, and serve the evolving demands of global clients. While still in its early stages, this shift could mark a significant evolution for legacy financial institutions and the broader stablecoin market.

BoA’s Stablecoin Strategy: Early, But Serious

During its Q2 2025 earnings call, Moynihan outlined the bank's current stance. Rather than jumping into issuing their own token immediately, BoA is taking a calculated approach. “We believe that if clients want to use stablecoins to move part of that money, they’ll move,” he said.

The bank is testing the waters by evaluating how stablecoins could serve as transactional tools. The CEO noted that they’ve already done significant groundwork, hinting at internal pilots and research. However, BoA is also cautious. Many use cases involve smaller transaction amounts that don’t yet justify wholesale adoption, but the writing is clearly on the wall.

Why Stablecoins, and Why Now?

The rise of stablecoins as digital dollar equivalents has caught the attention of institutions around the world. Designed to combine the stability of fiat with the flexibility of crypto, stablecoins are increasingly seen as a core part of future payment rails.

For Bank of America, the benefits are obvious:

• Faster settlement times
• Reduced costs
• Always-on global access
• Compatibility with decentralized and programmable finance

The legacy bank is also watching market trends. As Tether’s USDT and Circle’s USDC dominate the space, there’s a growing belief that a regulated, bank-issued alternative could fill the trust gap.

A Collaborative Approach: JPMorgan, Citigroup, and Beyond

Bank of America isn’t alone. Reports suggest that the institution is in talks with other major banks, including JPMorgan and Citigroup, to potentially launch a collaborative stablecoin or shared payment system. This aligns with the industry’s broader direction: regulated financial entities creating digital dollars backed by traditional reserves.

Such joint efforts would lend credibility to stablecoins, especially amid growing regulatory oversight in the United States. Unlike early stablecoin experiments in the crypto space, these versions would likely come with strict compliance protocols, audited reserves, and direct access to the financial system.

The Numbers Behind the Shift

Bank of America moves trillions in client assets daily. Even a small shift toward blockchain-based settlements could have an outsized impact. While Moynihan hasn’t given specific projections, he emphasized that demand will drive adoption.

“If the legislation supports it and the demand exists, we’ll move,” he reiterated. That legislative support may come sooner than expected.

Regulation is the Missing Piece

Despite the tech readiness, the lack of comprehensive stablecoin legislation remains the key barrier. Bank of America has made clear that its involvement will deepen only with regulatory clarity. Moynihan mentioned this as early as May 2025 and reiterated it during the Q2 call.

Enter the GENIUS Act, a bipartisan bill that could establish a clear framework for fiat-backed stablecoins in the U.S. If passed, the Act would greenlight regulated entities like BoA to issue or manage stablecoins under strict supervision.

However, political hurdles remain. Although the bill passed the Senate, it has stalled in the House due to procedural roadblocks. A final vote is expected soon, and the financial world is watching closely.

The Stablecoin Surge in 2025

This move comes as stablecoins are experiencing explosive growth. According to DefiLlama, stablecoin transaction volumes in 2024 surpassed those of Visa and Mastercard combined. The total stablecoin market is now valued at over $257 billion, nearly double what it was in early 2023.

Tether’s USDT and Circle’s USDC together dominate 85% of that market. But there’s increasing space and appetite for more stable, regulated competitors backed by banking giants.

The Real Opportunity: Default Internet Money

Industry experts increasingly believe stablecoins could become the “default settlement layer of the internet.” Unlike credit cards or wire transfers, stablecoins offer 24/7 accessibility, instant settlement, and minimal friction.

This aligns with Bank of America’s broader push to modernize its core infrastructure. Whether through internal adoption or partnerships with fintech innovators, the next few years could see a hybrid finance model where stablecoins and traditional finance converge.

Bank Results: A Mixed Quarter, A Focused Vision

While BoA’s Q2 2025 results were mixed, they showed steady growth and a willingness to innovate. The bank reported:

• Net income of $7.12 billion, a 3% year-on-year increase
• Revenue of $26.61 billion, a modest 4% gain, slightly below expectations

The numbers weren’t spectacular, but they signaled strength amid global macro uncertainty. More importantly, the earnings call confirmed that BoA is aligning its future with the evolving digital economy.

Conclusion: A Quiet Revolution in Banking

Bank of America’s stablecoin exploration isn’t a flashy announcement, but it could be one of the most meaningful shifts in modern finance. By considering stablecoins not just as speculative tools but as infrastructure for daily transactions, BoA is preparing for a world where blockchain quietly powers trillions in traditional finance.

With regulators on the verge of creating clearer rules and other big banks in the game, this evolution is no longer hypothetical. It’s inevitable.