Bank of America (BoA) is considering launching its own stablecoin but is waiting for full regulatory approval before proceeding.
CEO Brian Moynihan revealed the bank's interest in stablecoins during a discussion at the Economic Club of Washington, D.C., emphasizing that the initiative hinges on US government authorization of stablecoins as a legitimate asset class.
Moynihan stated that if the government grants approval, BoA will enter the stablecoin market, potentially competing with established issuers like Circle and Tether. Analysts speculate that a BoA-backed stablecoin would likely be tied to US dollar deposit accounts, offering applications in retail payments and cross-border transactions. The bank, which manages $3.3 trillion in assets, could allocate up to $9 billion annually to support its stablecoin infrastructure.
Industry experts believe regulatory clarity for stablecoins is imminent, with US policymakers expected to introduce new guidelines requiring stablecoin issuers to register domestically. While Circle has openly backed regulatory oversight and has secured approvals in Dubai and Canada, Tether remains skeptical, viewing such measures as restrictive. As the regulatory landscape evolves, BoA’s potential entry into the stablecoin space could disrupt the market, leveraging its financial strength to challenge existing players.
0 Comments