Bank of America is preparing to launch a stablecoin as it explores blockchain-powered payment systems, joining a growing list of major U.S. banks advancing in digital asset innovation amid evolving U.S. legislation.BoA Signals Entry Into Stablecoin MarketBank of America is in the early phases of developing its ownstablecoin, with plans to integrate the digital asset into its payment infrastructure. CEO Brian Moynihan confirmed during the bank’s second-quarter earnings call that the initiative is focused on leveraging stablecoins as a transactional tool, though he refrained from specifying a launch timeline.The bank’s objective is to streamline the movement of trillions in daily client assets, with Moynihan suggesting that clients would adopt stablecoin rails if the infrastructure is secure and reliable.Addressing the potential for using blockchain-based systems to handle dollar and euro transactions more efficiently, Moynihan stated,Collaborative Approach With Peers Under ConsiderationBank of America has reportedly considered joining forces with other major banks, including JPMorgan and Citigroup, for a joint stablecoin issuance. While such a collaboration has not been formalized, it reflects the increasing interest among traditional financial institutions to embrace digital asset frameworks amid broader industry shifts.Other U.S. banking giants are also exploring stablecoins. Morgan Stanley CFO Sharon Yeshaya noted the bank is actively discussing use cases, while JPMorgan CEO Jamie Dimon confirmed his institution’s intention to be involved. Citigroup CEO Jane Fraser added that her bank is reviewing potential issuance plans for a proprietary Citi stablecoin.Regulatory Momentum Fuels Institutional ConfidenceThe timing of BoA’s stablecoin initiative coincides with mounting legislative support for stablecoins in Washington. The GENIUS Act, a key bill aimed at creating a regulatory framework for fiat-pegged digital assets, passed the Senate in June with bipartisan support. However, it stalled in the House earlier this week due to procedural hurdles, though a floor vote is expected shortly.The Trump administration has prioritized stablecoin regulation as part of its broader crypto policy platform. Progress on this front could significantly accelerate the institutional rollout of stablecoin offerings across the financial sector.Stablecoins Surging as Internet’s Settlement LayerStablecoins, cryptocurrencies designed to maintain parity with fiat currencies like the U.S. dollar, have seen rapid adoption. Their use as a reliable medium of exchange and settlement has grown to the point where 2024’s stablecoin transaction volumes outpaced those of both Visa and Mastercard combined.As of mid-2025, the total market capitalization of stablecoins has reached $257 billion, nearly double from early 2023. Tether’s USDT and Circle’s USDC collectively dominate over 85% of this market, but the entrance of major banks like BoA could significantly reshape the competitive landscape.Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice