Several major US banks, including Bank of America and Citibank, are actively exploring the launch of stablecoins amid a shifting regulatory landscape in the United States that appears to be becoming more accommodating to digital assets.
Moynihan noted that while the bank has done considerable groundwork on this initiative, it is still assessing client demand, which he described as currently low. He emphasized that the bank would proceed with the rollout at an appropriate time, potentially in collaboration with other industry players.
Interestingly, this growing appeal towards these stable cryptocurrencies mirrors a broader trend among US banks, reminiscent of their previous adoption of peer-to-peer payment platforms such as Zelle and Venmo.
The dubbed GENIUS Act, is expected to reach Trump’s desk for approval, potentially paving the way for a more integrated relationship between digital assets and traditional finance.
The bank’s CEO highlighted Citigroup’s focus on launching a stablecoin and entering the tokenized deposit sector, which she believes are good opportunities for the company.
Citigroup is also reportedly exploring new solutions for stablecoins usage in terms of reserve management coupled with providing custody services for cryptocurrencies, similar to Coinbase’s strategy in this sector.
Meanwhile, Morgan Stanley is also said to be closely monitoring developments in the stablecoin arena, with CFO Sharon Yeshaya acknowledging the potential uses for their client base, although she cautioned that it is still early to determine the impact of stablecoins on their operations.
According to Reuters’ report on the matter, the financial giants are currently awaiting legal clarity regarding stablecoins from Congress and the House of Representatives, which has contributed to a slower pace of progress than some investors had anticipated.
Featured image from Bloomberg, chart from TradingView.com
