Big U.S. Banks Move Closer to Stablecoin Launches Amid Push for Regulatory Clarity

Bank of America, Citigroup, and Morgan Stanley Eye Digital Dollar Integration 

Major U.S. banks are preparing to enter the stablecoin space as legislative momentum builds in Washington to provide a clear regulatory path for digital assets. Bank of America, Citigroup, and Morgan Stanley have all acknowledged they are exploring or actively working on stablecoin initiatives, a sign that traditional finance is aligning more closely with digital currency infrastructure as the regulatory climate begins to shift. The comments came during earnings calls this week, coinciding with a push in Congress to advance bills that could redefine the future of crypto in the United States.

Bank of America CEO Brian Moynihan confirmed the bank has been developing a stablecoin product but gave no timeline for its release, citing the need to first understand both legal guardrails and client demand. “We feel both the industry and ourselves will have responses. We’ve done a lot of work,” Moynihan said, while also noting demand for stablecoin services is not yet high. He emphasized that Bank of America will roll out a solution “at an appropriate time,” likely in collaboration with other entities, and compared the adoption curve to that of peer-to-peer platforms like Zelle and Venmo. The bank, which ranks as the second-largest in the U.S., is still assessing the scope and scale of potential money movement associated with such products.

Citigroup appears to be further along, with CEO Jane Fraser revealing that the bank is actively considering issuing a proprietary Citi stablecoin to facilitate digital payments. Fraser called the initiative “a good opportunity,” highlighting it as a strategic move that aligns with evolving customer needs and the digitization of financial infrastructure. Meanwhile, Morgan Stanley is adopting a more cautious stance. Chief Financial Officer Sharon Yeshaya said the firm is closely monitoring the landscape and evaluating how stablecoins might serve its specific client base, though she acknowledged it is still “a little early to tell” how such products would integrate with the firm’s existing business lines.

JPMorgan Chase CEO Jamie Dimon also weighed in, stating that the bank will be involved in stablecoins, though he declined to provide further details. While Dimon has maintained a skeptical view of Bitcoin, his nod toward stablecoin participation suggests a pragmatic embrace of select crypto technologies that serve more traditional use cases, particularly payments and settlement.

Charles Schwab, managing over $10 trillion in assets, is also exploring the introduction of a stablecoin and plans to expand into spot trading for Bitcoin and Ethereum, as announced by CEO Rick Wurster. This strategic move aims to enhance blockchain transaction solutions for Schwab's extensive client base, potentially integrating digital assets with traditional finance.

The push by traditional banks has triggered pushback from the crypto-native community and digital rights advocates who fear Wall Street’s involvement could recentralize stablecoins and stifle innovation. Critics argue that giving large financial institutions dominance over digital dollars would reintroduce the very gatekeeping the crypto movement aimed to eliminate. 

Advocacy groups like Coin Center have voiced concerns about potential surveillance mechanisms embedded in bank-issued stablecoins. They warn that such tools could allow for fine-grained transaction monitoring, raising privacy risks for users. Industry veterans have also flagged that regulatory frameworks built around bank issuance could marginalize non-bank stablecoin issuers entirely.

Regulators are increasingly making clear that stablecoin issuers will fall under traditional banking oversight. SEC Chairman Gary Gensler has reiterated that these instruments must comply with existing banking rules, effectively reinforcing the view that only federally regulated institutions should issue them. This stance has created friction with firms like Circle and Ripple, which have recently faced resistance from U.S. banking associations in their efforts to secure full banking licenses.

Meanwhile, established non-bank issuers are already adapting. Tether has reportedly shifted more of its reserves into short-term U.S. Treasuries to align with anticipated requirements under the GENIUS Act, while Circle is strengthening its compliance programs in a bid to maintain relevance in a regulated environment. Both firms aim to position themselves ahead of the curve as lawmakers finalize stablecoin legislation.

The growing interest among top-tier banks coincides with legislative developments in Washington, where a series of crypto-friendly bills are advancing through Congress. One key proposal would establish a regulatory framework for stablecoins, offering the legal clarity that financial institutions have long awaited. Trump has signed the stablecoin bill into law, cementing his administration’s commitment to positioning the U.S. as a global leader in digital asset policy. His self-styled role as the “crypto president” is already influencing both political momentum and corporate engagement across the financial sector.

Bank executives stressed that despite internal progress, the pace of stablecoin adoption remains largely contingent on regulatory certainty. “You would expect us all to move, our company to move on that,” Moynihan said, signaling readiness once the rules are firmly established. For now, the sector is watching Congress closely as banks prepare their entry strategies for a regulated, dollar-backed digital future.

This article has been refined and enhanced by ChatGPT.