BofA CEO Brian Moynihan said on Wednesday the bank is working on launching a stablecoin, and investors can expect the lender to move forward with it, without giving a timeline.
Stablecoins, a type of cryptocurrency designed to maintain a constant value, are usually pegged to a fiat currency such as the U.S. dollar and are commonly used by crypto traders to move funds between tokens.
“We feel both the industry and ourselves will have responses. We’ve done a lot of work,” Moynihan, CEO of the second-largest U.S. bank, said.
“We are still trying to figure out how big or small it is, because in some places there are not big amounts of money movement. So you would expect us all to move, our company to move on that,” Moynihan told analysts on a post-earnings conference call.
Moynihan said Bank of America was trying to understand client demand, which was not high currently, and would roll out a stablecoin at an appropriate time, likely in partnership with other players. He compared banks’ interest in stablecoin with their adoption of peer-to-peer digital payments platforms such as Zelle and Venmo.
U.S. President Donald Trump has promised to be the “crypto president,” popularizing its mainstream use in the country. A series of crypto industry-friendly bills is expected to progress through Congress this week, paving the way for digital assets to potentially further integrate into traditional finance.
One of the most notable is a bill that would establish a regulatory framework for stablecoins and is likely to advance to Trump’s desk for approval.
The banks are still awaiting legal clarity, Moynihan said, explaining why progress has been slower than some investors anticipated.
Morgan Stanley Chief Financial Officer Sharon Yeshaya said on Wednesday the bank was following stablecoin developments closely.
“We’re looking both at the landscape, the uses, and the potential uses for our own client base. But, it really is a little early to tell, especially for the businesses we run versus businesses that you might see from competitors, on how a stablecoin would play in,” she added. Citigroup CEO Jane Fraser also said the bank may issue a stablecoin to facilitate digital payments.
“We are looking at the issuance of a Citi stablecoin,” she told analysts after reporting earnings on Tuesday. “This is a good opportunity for us.”
JPMorgan Chase CEO Jamie Dimon, who has been a vocal skeptic of bitcoin, said on Tuesday the bank will be involved in stablecoins, without giving details.
