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Bank of America to Launch Stablecoin After Congress Acts
Bank of America, the U.S.'s second-largest bank, intends to launch a stablecoin once U.S. laws approve bank-issued dollar-backed tokens.
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The U.S.'s second-largest bank, Bank of America, boasting $3.26 trillion in total assets, is prepared to roll out a stablecoin as soon as U.S. lawmakers pass legislation that clarifies how banks can issue dollar-backed tokens.
What's the scoop?
- Legislative Prerequisite: CEO Brian Moynihan said the bank’s stablecoin depends on federal legislation, which lawmakers may pass in the next few months.
- Stablecoin Similarities: Moynihan compared stablecoins to money market accounts, emphasizing full dollar backing and broad payment potential.
- Competitor Watch: JPMorgan already has “JPM Coin,” on the Onyx blockchain, and PayPal pushed ahead with PYUSD. Bank of America’s move could intensify market competition.
- Federal Focus: Senate Banking Committee Chairman Tim Scott (R-SC) has vowed to pass stablecoin legislation, the GENIUS Act, within Trump’s first 100 days.
- Business Strategy: The bank’s $3.26 trillion in total assets underscores the scale of a future “Bank of America (stable)Coin.”