Recently, Brian Moynihan, CEO of Bank of America, revealed in an interview at the Economic Club of Washington, D.C., that the bank plans to launch a stablecoin supported by the US dollar when regulations allow. This statement not only marks a significant shift in attitude towards Crypto Assets by the second largest bank in the United States but also indicates that under the support of the Trump administration, Wall Street Financial Institutions are accelerating their embrace of digital assets.
From cautious observation to active layout
For a long time, American banks have kept a low profile in the cryptocurrency field, compared with peers such as JPMorgan Chase and Citigroup who are actively exploring blockchain technology, their pace seems conservative. Moynihan admitted that the bank has “always been in a secondary position” in the encryption industry. However, he explicitly stated this time that once US legislators pass relevant laws, the American bank will quickly launch its own US dollar stablecoin, tentatively called “American Bank Coin.” He likened the stablecoin’s function to a money market fund or a bank account, emphasizing that it is essentially a “digital foreign currency” that can seamlessly integrate with traditional US dollar deposits, facilitating two-way fund flows.
‘If they legalize it, we will enter the business,’ Moynihan said in an interview with David Rubenstein, ‘It is obvious that there will be a stablecoin fully backed by the US dollar… We hope customers can freely convert between deposits and stablecoins.’ This vision not only reflects the recognition of stablecoin payment potential by US banks but also implies their intention to get a share in the digital financial field.
The Trump administration’s new encryption policy
The strategic adjustments of American banks are closely related to the policy shift after the Trump administration came to power. Since January 20, 2025, when Trump officially took office, his administration has shown strong support for Crypto Assets, promising to provide clearer regulatory guidance for the industry. David Sacks, the new Cryptocurrency and Artificial Intelligence czar at the White House, said that Congress will pass stablecoin-related legislation within the first 100 days of Trump’s tenure (i.e. by the end of April). This timetable has the support of the Republican-controlled Congress, with Senators Tim Scott and Representative Patrick McHenry both publicly stating that stablecoin legislation is a top priority.
In late January, Trump signed an executive order announcing the establishment of a digital asset working group led by Sachs, aimed at developing a comprehensive regulatory framework to support blockchain innovation and maintain the global dominance of the US dollar. The order explicitly opposes the issuance of central bank digital currencies (CBDC) and instead encourages the private sector to develop stablecoins backed by the US dollar. In a recent speech, Sachs stated, ‘Stablecoins are the future of the digitized dollar and will solidify America’s leadership position in global finance.’ This stance sharply contrasts with the previous Biden administration, whose SEC’s tough enforcement actions in the encryption industry had deterred many Financial Institutions.
The bipartisan game of stablecoin legislation
Stablecoins, due to their low volatility and their value pegged to legal tender such as the US dollar, have become an important tool in the field of payment and transactions. According to Visa’s data, the global stablecoin transaction volume in the past year has exceeded 33 trillion US dollars, surpassing the sum of Visa and Mastercard. However, its rapid development has also raised regulatory concerns, including money laundering risks and reserve transparency issues.
To address these challenges, the U.S. Congress has made multiple attempts in recent years to legislate stablecoins. The ‘Lummis-Gillibrand Stablecoin Payment Act of 2024’ requires the issuer to hold 1:1 cash or highly liquid assets as support and undergo regular audits. In early February 2025, Senator Bill Hagerty, along with several other senators, introduced the ‘GENIUS Act,’ which further clarifies the supervision of non-bank issuers by the Office of the Comptroller of the Currency (OCC) and requires reserve assets to include the U.S. dollar, treasury bonds, etc.
The two parties have both consensus and differences in their attitudes towards stablecoins. The Republican Party believes that stablecoins can enhance the international influence of the US dollar, promote financial innovation, and even indirectly lower long-term interest rates by increasing demand for government debt. The Democratic Party, on the other hand, is concerned that stablecoins may be used for illegal activities and advocates strengthening anti-money laundering (AML) and know your customer (KYC) requirements. Although the Republican Party currently controls Congress, analysts point out that the final bill may require a bipartisan compromise to ensure its broad acceptance. Earlier this month, a group of lawmakers pledged to pass legislation within 100 days of Trump taking office, and this goal is accelerating.
The competition on Wall Street is intensifying
The stablecoin plan of the Bank of America is not an isolated incident, but a microcosm of Wall Street’s growing enthusiasm for Crypto Assets. JPMorgan Chase launched JPM Coin as early as 2019 for internal payment settlements; Citigroup is exploring blockchain cross-border payment applications. Another traditional Financial Institution, Charles Schwab, recently hired a director of digital assets, indicating a shift from observation to action. The expected regulatory relaxation by the Trump administration is expected to further catalyze this competitive situation, potentially prompting more banks to join the stablecoin race.
The rise of stablecoins poses a challenge to traditional payment giants. With a trading volume of 33 trillion US dollars, it is not just a tool in the encryption market, but an important part of the global payment ecosystem. Visa and Mastercard may need to accelerate innovation to cope with the impact of this emerging technology. At the same time, the prosperity of stablecoins also provides new opportunities for institutions like American banks, especially in the field of cross-border payments and decentralized finance (DeFi).
Potential and risks coexist
If a U.S. bank were to launch a stablecoin, it could have the following impacts:
Payment efficiency improvement: Stable coins can achieve low-cost, real-time cross-border transactions, optimizing international remittance experience.
Enhanced customer stickiness: Offering digital asset services may attract a younger generation and high-net-worth clients.
The consolidation of the US dollar: 98% of stablecoins globally are denominated in US dollars, and their development will strengthen the international influence of the US dollar.
However, risks should not be ignored. First, the uncertainty of regulation still exists. Although the Trump administration has promised support, the specific implementation of rules may be delayed due to market volatility or political resistance. Secondly, reserve management is crucial. Tether (USDT) has been fined for reserve disputes, and US banks need to ensure the transparency and liquidity of its stablecoin assets to deal with potential liquidity risks. In addition, the widespread use of stablecoins may trigger systemic risks, requiring close monitoring by regulatory authorities.
Industry Expert Views
Encryption analyst James Rickards said: “The entry of US banks will mark the transition of stablecoins from the edge to the mainstream, and the integration of traditional finance and digital assets will be irreversible.” Philip Gradwell, Chief Economist of blockchain consulting firm Chainalysis, pointed out: “The support of the Trump administration has provided a golden opportunity for stablecoins, but the balance of regulatory details will determine their success or failure.”
Conclusion
The US bank’s plan to launch a stablecoin tied to the US dollar is the latest footnote to the traditional financial giant’s transformation in the wave of encryption. With the assistance of the Trump administration, stablecoin legislation is expected to be implemented in the first half of 2025, injecting new vitality into the industry. This trend may not only reshape the competitive landscape of Wall Street, but also consolidate the position of the US dollar in the digital era. However, the uncertainty of regulation and potential risks remind us that this transformation still needs to be carefully promoted. For the global financial markets, this move by the US bank may just be the prelude to a larger transformation.
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