Bank of America (BoA) has thrown its hat in the ring to become a stablecoin issuer but the company is holding its reins till certain conditions are met. The financial institution wants the govenment to formally approve stablecoins as a legal asset before it wades in.
Bank of America Eyes Stablecoin Launch
BoA CEO Brian Moynihan says his company is keen on launching its stablecoin offering for consumers in the near future. Moynihan disclosed the plans during a panel session at the Economic Club of Washington, D.D., noting that only one requirement remains for the company.
The CEO notes that if stablecoins receives the approval of the US government, Bank of America will launch its offering. In his session, Moynihan expressed optimism for the regulator to give the greenlight for stablecoins under crypto-facing Trump administration.
“If they make that legal, we will go into that business,” said Moynihan.
While details remain sparse, pundits say a BoA stablecoin will be linked to US dollar deposit accounts. For Brian Moynihan, the use cases for the stablecoin will be far-reaching for consumers, birthing applications in local retail and cross-border applications.
BoA is expected to be a direct competitor to Circle and Tether, issuers of top stablecoins in the ecosystem. Armed with large capital reserves, Moynihan is eyeing sinking up to $9 billion each year for a stablecoin system.
Bank of America with its $3.3 trillion AUM has the company CEO describing the impact of a rollout as “unbelievable.”
Fullscale Stablecoin Approval Is in View
There is consensus in the cryptoverse that US regulators are inching toward full approvals for stablecoins. While industry players are pining for approvals, stablecoin issuers are bracing for stringent regulations.
Sources say that the incoming rules will mandate stablecoin issuers to seek registrations in the US.
While Circle CEO Jeremy Allaire supports the proposal, Tether’s top brass view the move as attempt to stifle the Hong-Kong based outfit. Circle, reeling from its approvals in Dubai and Canada is confident of clinching US approval while Tether has endured its share of regulatory troubles in Europe.
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