Several major US banks, including Bank of America and Citibank, are actively exploring the launch of stablecoins amid a shifting regulatory landscape in the United States that appears to be becoming more accommodating to digital assets.
Traditional Finance Moves Toward Digital Assets
According to a Reuters report, Bank of America CEO Brian Moynihan recently confirmed that the bank is in the process of developing its own stablecoin, although he refrained from providing a specific timeline for its release.
Moynihan noted that while the bank has done considerable groundwork on this initiative, it is still assessing client demand, which he described as currently low. He emphasized that the bank would proceed with the rollout at an appropriate time, potentially in collaboration with other industry players.
Interestingly, this growing appeal towards these stable cryptocurrencies mirrors a broader trend among US banks, reminiscent of their previous adoption of peer-to-peer payment platforms such as Zelle and Venmo.
US President Donald Trump, who has positioned himself as a proponent of cryptocurrency, is also influencing this momentum. A series of crypto-friendly bills have advanced through Congress, including one that aims to establish a regulatory framework for stablecoins.
The dubbed GENIUS Act, is expected to reach Trump’s desk for approval, potentially paving the way for a more integrated relationship between digital assets and traditional finance.
Stablecoin Developments As Potential Client Solutions
Citigroup’s CEO, Jane Fraser, has also expressed interest in launching a stablecoin to facilitate digital payments. As reported by NewsBTC, in her remarks following the bank’s earnings report, she highlighted the opportunity that this initiative presents.
The bank’s CEO highlighted Citigroup’s focus on launching a stablecoin and entering the tokenized deposit sector, which she believes are good opportunities for the company.
Citigroup is also reportedly exploring new solutions for stablecoins usage in terms of reserve management coupled with providing custody services for cryptocurrencies, similar to Coinbase’s strategy in this sector.
Meanwhile, Morgan Stanley is also said to be closely monitoring developments in the stablecoin arena, with CFO Sharon Yeshaya acknowledging the potential uses for their client base, although she cautioned that it is still early to determine the impact of stablecoins on their operations.
Despite the growing interest, banks like JPMorgan Chase, led by CEO Jamie Dimon—who has been a noted skeptic of the market’s leading crypto, Bitcoin (BTC)—are also considering involvement in these dollar-pegged cryptocurrencies, although details remain sparse.
According to Reuters’ report on the matter, the financial giants are currently awaiting legal clarity regarding stablecoins from Congress and the House of Representatives, which has contributed to a slower pace of progress than some investors had anticipated.
Featured image from Bloomberg, chart from TradingView.com
