As U.S. crypto regulatory frameworks accelerate, Bank of America (BoA), the nation’s second-largest commercial bank, has confirmed it’s developing a USD-pegged stablecoin. With financial giants entering the arena, stablecoin and payment startups now face competition from traditional institutions—a shift poised to reshape global finance.
Bank of America CEO’s Statement: "We Must Be Ready"
BoA CEO Brian Moynihan publicly announced on June 11 that the bank is collaborating with industry players to develop a dollar-backed stablecoin, confirming months of speculation.
While Moynihan acknowledged that market demand remains uncertain, he emphasized:
"We must be ready."
The project will advance only if U.S. regulators establish clear guidelines, reflecting how major banks are strategically investing in crypto infrastructure despite cautious pacing.
Regulatory Boost: The GENIUS Act as a Catalyst
BoA’s move aligns with progress on the GENIUS Act (Stablecoin National Innovation Guidance Act), which cleared a key Senate vote (68–30) on the same day. If passed, the bill will:
- Define "payment stablecoins" under federal law.
- Mandate 1:1 reserve backing and segregated operational funds.
- Streamline compliance for banks like BoA to issue stablecoins.
👉 How the GENIUS Act could revolutionize stablecoin adoption
With Senate approval expected soon, the House may fast-track the bill, providing a regulatory green light for institutional stablecoins.
Europe’s Lead: Société Générale Launches Second Stablecoin
Meanwhile, Société Générale’s digital asset arm, SG-FORGE, unveiled EUR CoinVertible (USD), a dollar-pegged extension of its euro stablecoin. Deployed on Ethereum and Solana, it enables 24/7 conversions between USD, EUR, and stablecoins—set to launch in July.
This marks the first MiCA-compliant USD stablecoin in the EU, targeting corporate demand for round-the-clock settlements.
The New Stablecoin Race: Traditional Finance Joins the Fray
Once dominated by crypto-native firms like Circle and Tether, stablecoins now attract traditional players. BoA’s entry signals a broader shift:
| Trend | Impact |
|--------------------------|-------------------------------------|
| Institutional Adoption | Legitimizes stablecoins for mainstream finance. |
| Regulatory Clarity | Accelerates bank-backed projects. |
| Global Competition | EU and U.S. vie for fintech leadership. |
👉 Why banks are betting big on blockchain-powered finance
Rumors of a BoA-JPMorgan collaboration persist, though no joint ventures have materialized.
FAQ
1. Why is Bank of America developing a stablecoin?
To prepare for future demand and leverage regulatory clarity, ensuring competitiveness in digital payments.
2. How does the GENIUS Act help stablecoins?
It creates a federal framework for issuance, requiring transparency and reserves—key for institutional trust.
3. What’s unique about Société Générale’s stablecoin?
As the first MiCA-compliant USD stablecoin, it bridges EU and U.S. markets with multi-chain functionality.
4. Could stablecoins replace traditional banking?
Unlikely—but they’ll transform cross-border payments, trade, and liquidity management.
Risk Disclosure
Cryptocurrency investments carry high volatility and risk. Capital loss is possible. Assess risks carefully.