Bank Of America Ventures Into Stablecoins For Transactional Efficiency

By: Eliza Bennet

Bank of America (BoA) is actively exploring the integration of stablecoins into its payment systems as a significant step toward modernizing its financial infrastructure. Captain of this initiative, CEO Brian Moynihan, revealed that the financial giant is in the preliminary stages of utilizing blockchain technology to enhance transactional efficiency and the movement of funds.

During a recent earnings call, Moynihan emphasized that the initial focus for BoA is deploying stablecoins as a "transactional device". This exploration aims to streamline money flow through the bank's systems, potentially revolutionizing how traditional financial institutions handle trillions of dollars in client transactions each day. Reports indicate that BoA has been laying the groundwork in this area since early 2025, looking into collaborations with other major players in the U.S. banking sector, like JPMorgan and Citigroup.

The announcement by BoA coincides with a growing trend among legacy financial institutions moving toward blockchain-based payment rails. In fact, in 2024, stablecoin transaction volumes outpaced those of conventional networks, including Visa and Mastercard, highlighting the sector's impressive growth. The stablecoins market, with a value swelling to $257 billion, has been largely dominated by major players like Tether’s USDT and Circle’s USDC, constituting over 85% of the market.

As the stablecoin sector witnesses rapid expansion, there is a corresponding push for a clearer regulatory framework from legislators. The GENIUS Act, which forms part of the current administration's digital asset focus, passed the Senate with notable bipartisan support but faced delays in the House. Despite roadblocks, the proactive stance from Bank of America underscores a growing recognition of stablecoins as a cornerstone for future financial settlement systems.