Bank of America has signaled that multiple U.S. banks are preparing to issue their own crypto-linked stablecoins, marking a broader push by traditional financial institutions into digital assets.
In a report tied to the recently enacted GENIUS Act, Bank of America analysts projected that stablecoin supply could grow by $25 billion to $75 billion in the near term, up from a total market cap of roughly $270 billion. The expansion is expected to be fueled by regulatory clarity, infrastructure investment, and growing competition from tokenized deposits and money market funds.
Bank of America CEO Brian Moynihan confirmed the bank has done substantial internal work on stablecoin initiatives and plans to launch when regulations and client demand align. Moynihan emphasized that issuance may likely happen through consortium‑based models rather than solo bank offerings.
Other major banks including JPMorgan Chase, Citigroup, Goldman Sachs, and Wells Fargo are reportedly weighing similar digital currency strategies. JPMorgan and Citi have begun exploring tokenized payments platforms and digital deposit tokens, while Goldman Sachs is studying internal stablecoin applications.
While industry insiders expect broader adoption over the next two to three years, most banking executives believe that domestic payment systems will remain relatively stable in the short term. Instead, cross-border use cases, institutional liquidity management, and digital yield products stand to benefit most initially.
Analysts also note that growing stablecoin reserves could increase demand for short-term U.S. Treasury bills as liquidity backing.
Under the GENIUS Act, banks and fintech firms can now legally issue dollar‑pegged stablecoins provided full backing with liquid assets and regular reporting.
Sources: CoinDesk, Reuters, DeepNewz, Banking Exchange, The Defiant, MarketWatch
Date of reporting: July 24, 2025
