Big U.S. Banks Eye Stablecoin Launches Amid Push for Clearer Crypto Rules
Several large U.S. banks, including Bank of America and Citibank, are exploring the launch of stablecoins as regulators signal a shift toward more crypto-friendly policies. The effort comes as financial institutions assess customer demand and navigate legal uncertainties that have slowed broader adoption. Bank of America Chief Executive Brian Moynihan said the lender has made significant progress on a potential stablecoin and plans to move forward when market conditions are right. However, he did not offer a timeline. Stablecoins are digital tokens typically pegged to fiat currencies like the U.S. dollar and are widely used to facilitate quick transfers between cryptocurrencies. “We feel both the industry and ourselves will have responses. We’ve done a lot of work,” Moynihan said during a post-earnings call with analysts. “We are still trying to figure out how big or small it is, because in some places there are not big amounts of money movement.” Cautious Approach Driven by Low Demand and Legal Uncertainty While some fintech firms and crypto exchanges have quickly adopted stablecoins, major banks remain cautious. Moynihan acknowledged that current client demand for bank-issued stablecoins is limited. Still, he noted the lender is considering partnerships with other institutions to roll out a product when the time is right. Moynihan likened the banks’ measured approach to their earlier adoption of peer-to-peer payment platforms such as Zelle and Venmo, suggesting banks would enter the market only when the product addresses real customer needs. Legal clarity remains a significant hurdle. The banks are still awaiting legal clarity, Moynihan said, pointing to regulatory uncertainty as a key reason for the slower pace compared to market expectations. He did not elaborate on specific regulatory issues but signalled that broader federal guidance would be crucial before launching any stablecoin. Industry Interest Broadens Beyond U.S. Banks Citibank has also shown interest in launching its own stablecoin, though details remain scarce. Meanwhile, Morgan Stanley Chief Financial Officer Sharon Yeshaya said Wednesday the bank is monitoring developments in the space. Yeshaya did not confirm specific plans but noted that stablecoins and related blockchain technologies remain areas of strategic focus. The growing interest among traditional banks reflects a gradual shift in the industry’s view of digital assets, particularly as policymakers in Washington consider clearer regulations. Analysts suggest that if stablecoins backed by established banks enter the market, they could offer more security and transparency than privately issued tokens.