Will US Banks Launch Their Own Stablecoins? Bank Of America Says They Might

Bank of America BAC views the recently signed GENIUS Act as a pivotal step in shaping stablecoin regulation in the U.S., setting the stage for broader tokenization in finance.

What Happened: In a research note last week, the bank’s analysts said the legislation, signed by President Donald Trump, could spur infrastructure development and drive competition in the digital finance sector, Coindesk reported.

Stablecoins, which are digital tokens backed by fiat currencies or commodities like gold, are expected to see moderate growth in the near term.

Bank of America projects their supply could increase by $25 billion to $75 billion, driven by new product launches, infrastructure upgrades, and the emergence of alternatives like tokenized deposits and blockchain-based money market funds.

Currently, the total stablecoin market capitalization stands at approximately $270 billion, according to CoinMarketCap data.

Looking ahead over the next two to three years, analysts foresee an industry shift toward consolidation and greater adoption of both stablecoins and tokenized assets.

This trend will likely gain momentum through the legislative clarity provided by the CLARITY Act, which aims to define the regulatory status of digital assets, separating them as either commodities or securities.

Also Read: $332 Million To Minus $85 Million: Why Are Ethereum ETFs Suddenly More Popular Than Bitcoin ETFs?

While the CLARITY Act has passed in the House, it is still awaiting Senate approval.

The report also highlights growing interest from traditional financial institutions. Many bank executives are preparing to issue stablecoins under consortium-led structures.

Bank of America is among them.

CEO Brian Moynihan recently confirmed that the bank has laid internal foundations to participate in the stablecoin market and plans to act when the timing aligns.

Despite increasing interest in cross-border applications, the report suggests that near-term disruption to domestic payment systems is unlikely.

On the macroeconomic front, growing demand for U.S. Treasuries used as stablecoin reserves could lead the Treasury Department to prioritize issuance of short-term government bills to meet liquidity needs.

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