In a pivotal shift for the financial sector, Bank of America and U.S. Bank have announced plans to integrate stablecoins, marking a significant step toward merging traditional banking with digital assets. This move aligns with a broader push for regulatory clarity in the U.S., particularly through the anticipated GENIUS Act, which aims to establish a robust framework for stablecoin issuance and usage.
At a recent industry conference in New York, executives from Bank of America, U.S. Bank, and Fifth Third Bancorp expressed strong support for stablecoin adoption. Bank of America CEO Brian Moynihan underscored the urgency of adapting to the evolving financial landscape, stating, “We have to have it. The industry has to have it.” He highlighted stablecoins’ potential to enable faster transactions and enhance liquidity, signaling a proactive approach to digital asset integration.
Similarly, Bryan Preston, CFO of Fifth Third Bancorp, emphasized the efficiency gains stablecoins could bring, particularly for international payments, noting, “We think that there are some interesting places where stablecoin can really create some efficiencies in the commerce space.”
The momentum behind stablecoin integration is bolstered by the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act), which is poised to pass Congress soon. This bipartisan legislation aims to create a clear federal framework for stablecoins, addressing longstanding concerns about regulatory ambiguity. Moynihan noted that previous uncertainty had hindered innovation, stating, “It wasn’t clear we were allowed to do it under the banking regulations.” The GENIUS Act’s framework, which includes full reserve backing and anti-money laundering (AML) compliance, is expected to encourage banks to explore new opportunities in the crypto space.
Bank of America is reportedly collaborating with major banks like JPMorgan Chase and Citigroup to explore a joint stablecoin initiative. This collaborative effort aims to develop a standardized, regulator-compliant stablecoin to serve diverse financial applications. Posts on X also indicate that Bank of America is developing its own USD-pegged stablecoin, both independently and with industry partners, further highlighting its commitment to the sector.
U.S. Bancorp is also re-entering the crypto space, building on past efforts to offer crypto custody services. CEO Gunjan Kedia reflected on previous challenges, stating, “The product didn’t really take off because the regulatory regime at that point was very uncertain for large institutional investors.” With clearer regulations on the horizon, U.S. Bancorp is now well-positioned to provide stablecoin-based payment solutions, leveraging its infrastructure to meet growing demand.
The U.S. banking sector’s embrace of stablecoins aligns with global developments. For instance, Société Générale in France plans to launch USD CoinVertible, a U.S. dollar-based stablecoin, in July 2025. This international momentum underscores stablecoins’ potential to streamline cross-border transactions and enhance financial efficiency.
Despite the enthusiasm, not all banks are fully on board. John Turner Jr., CEO of Regions Financial, expressed reservations, stating, “I’ve not been a great fan of crypto.” Critics, including Senator Elizabeth Warren, have raised concerns about systemic risks, such as potential “stablecoin runs,” as seen in the 2022 UST crash. The GENIUS Act addresses some of these risks by banning yield-bearing stablecoins and mandating robust reserves, but concerns about financial stability and consumer protection remain.
As the GENIUS Act nears passage, Bank of America and U.S. Bank are positioning themselves at the forefront of stablecoin innovation. By leveraging regulatory clarity and collaborative efforts, these institutions aim to integrate digital assets into mainstream finance, potentially transforming payments and commerce. With global banks and retailers like Walmart and Amazon also exploring stablecoin use cases, the stage is set for a new era of financial innovation.
June 2025, Cryptoniteuae