Bank of America Said to Be Developing Its Own Stablecoin
Highlights
- Bank of America is developing a U.S. dollar-backed stablecoin to improve cross-border payments and expand financial service capabilities.
- The initiative reflects a broader trend, with 29% of Fortune 500 companies reportedly exploring the use of digital currencies.
- The stablecoin project emerges as regulatory scrutiny intensifies and global efforts to create digital currency frameworks continue.
Bank of America Reportedly Developing Dollar-Backed Stablecoin Amid Industry Shift
Bank of America is reportedly working on the development of its own U.S. dollar-backed stablecoin, according to recent discussions within the crypto community. CEO Brian Moynihan has publicly confirmed the bank’s intentions, noting that it’s “pretty clear” the project is moving forward. This announcement reflects a growing trend among traditional financial institutions showing increased interest in digital currencies and blockchain innovation.
Stablecoin Initiative Gains Momentum
According to recent reports, Bank of America is actively building a stablecoin pegged to the U.S. dollar. Moynihan’s comments follow earlier statements made in March, where he acknowledged that the bank felt “compelled” to explore blockchain technology and digital assets to remain competitive.
While early speculation suggested a possible collaboration with JPMorgan, current indications are that Bank of America is pursuing the project independently. The initiative is seen as a strategic move to improve cross-border payments, remittance services, and other financial offerings by leveraging the speed and efficiency of blockchain-based solutions.
Rise in Stablecoin Adoption
Stablecoins—digital assets designed to maintain a stable value while utilizing blockchain technology—have gained significant traction in recent years. Their appeal lies in offering faster, cheaper, and more accessible transactions outside of traditional financial infrastructure.
A 2024 report from Coinbase revealed that global stablecoin transaction volume reached an impressive $27.6 trillion. Interest from large corporations is also growing rapidly. In 2024, 29% of Fortune 500 companies reported exploring or adopting stablecoins, a sharp increase from just 8% the previous year. This surge reflects the demand for more efficient payment systems and the desire to reduce transaction costs and settlement delays.
Navigating Regulatory Challenges
Bank of America’s move into stablecoins comes at a time of increased regulatory scrutiny. Policymakers around the world are working to establish clear frameworks for the oversight of stablecoin issuers and their impact on financial stability. In the U.S., lawmakers—including the Senate—are actively discussing regulations to address transparency, consumer protection, and systemic risks.
The stablecoin space is also drawing interest from other major institutions. French banking group Société Générale recently announced plans to launch a dollar-pegged stablecoin, USD CoinVertible, through its digital asset division, SG-FORGE. The entry of major global banks into the sector underscores the growing acceptance of stablecoins as part of the future of financial services.
