Bank of America is officially developing its own US dollar-backed stablecoin, marking a major move by one of the largest financial institutions in the world. CEO Brian Moynihan confirmed the initiative publicly, noting that while the bank is not launching the coin yet, it is actively building the infrastructure behind it.

This development positions Bank of America—America’s second-largest bank with over $3 trillion in daily transactions—as a key player in the next phase of digital finance. Crucially, this is not a pilot or sandbox project. Moynihan emphasized that the bank is ready to enter the space as soon as the legal framework is in place.

“We have to have it. The industry has to have it,” he said during a recent conference. “If they make that legal, we will go into that business.”

Why Now?

The timing of BofA’s stablecoin effort is not accidental. Momentum is building in Washington as the U.S. Senate moves forward with the GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins Act), which would offer a formal regulatory framework for the issuance of fiat-backed digital tokens. With bipartisan support emerging, final passage of the bill appears increasingly likely.

Regulatory clarity is seen as the critical missing piece that has held traditional banks back from fully embracing tokenized dollars. Now, with legal guardrails in sight, large banks are moving swiftly to prepare.

The Broader Banking Shift

Bank of America is not alone. A number of major institutions in the U.S. and Europe are already engaged in stablecoin development or tokenized asset initiatives.

JPMorgan has been a first mover in this space with its proprietary JPM Coin, used for institutional payments and settlement among select clients. While not available for retail use, JPM Coin proves the viability of blockchain-based bank money for high-value transactions.

Citigroup, Wells Fargo, and Fidelity are also actively exploring the space. These institutions have been in talks with The Clearing House and Early Warning Services (the operator of Zelle) to co-develop a U.S. dollar stablecoin, though no formal issuance has been announced. Citi and Wells Fargo have both piloted tokenized cash solutions for internal settlement, and Fidelity continues to expand its blockchain infrastructure and custody solutions.

In Europe, Société Générale is moving even faster. Through its crypto-focused division, SG Forge, the French banking giant has launched a USD-pegged stablecoin called USD CoinVertible. Set to operate on both Ethereum and Solana, the coin is designed for institutional use and will be compliant with Europe’s new MiCA (Markets in Crypto-Assets) regulation. BNY Mellon is set to act as custodian for the reserves behind it.

Crédit Agricole, another major European institution, is following a slightly different path. It recently filed to launch spot Bitcoin and Ethereum ETFs, signaling its intention to participate in the growing market for tokenized investment products.

From Crypto Curiosity to Banking Standard

Stablecoins are no longer the exclusive domain of crypto startups. Banks increasingly view them as a core component of future financial infrastructure. Unlike speculative crypto assets, fiat-backed stablecoins offer the potential to move money around the world instantly, securely, and without relying on outdated payment networks.

With legislation now catching up, traditional financial institutions are laying the foundation to integrate digital dollars into everyday banking. That could mean faster B2B payments, on-chain settlement for securities, and even programmable financial services built on smart contract platforms.

Conclusion

Bank of America’s move to build a stablecoin is a clear signal that the banking sector is preparing for a major shift. Regulation, once the barrier, now appears to be the catalyst. As the GENIUS Act advances through Congress, we are likely to see a wave of stablecoin announcements from U.S. and international banks alike.

The next phase of digital finance won’t just be driven by startups—it will be led by the same institutions that have underpinned global finance for over a century.