Several major U.S. banks, including Citibank and Bank of America, are reportedly working on launching stablecoins. The news follows passage of the GENIUS Act, which aims to establish the first-ever regulatory framework for fiat-backed stablecoins. Lawmakers approved the bill in a 308-122 vote after hitting a snag earlier this week. The Senate passed the legislation last month, so it now heads to President Trump’s desk. BREAKING: Bank of America is developing its own stablecoin. Brian Moynihan, the CEO of BofA revealed it today. Stablecoins are launching on Wall Street! pic.twitter.com/i1cZhhEmlS — Coin Bureau (@coinbureau) June 11, 2025 Reuters explained: 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. “It’s pretty clear there’s going to be a stablecoin, which is going to be a fully dollar-backed, you know, type of thing,” Moynihan said earlier this year. “Which is no different than a money market fund with check access, it’s no different than a bank account,” he continued. Check it out: "It's pretty clear there's going to be a stablecoin, which is going to be a fully dollar-backed… it’s no different than a bank account," says Bank of America CEO Brian Moynihan. Watch this episode of Peer-to-Peer with David Rubenstein March 12th https://t.co/gHGN19L3VX pic.twitter.com/rhVDtwT8uQ — Bloomberg TV (@BloombergTV) February 25, 2025 Stablecoin critics say they have the same programmable, surveillance capabilities as central bank digital currencies, sometimes calling them de facto CBDCs. I don’t care how “convenient” they claim it is or how many times they say it'll "modernize the financial system." Once they control programmable money, they control your speech, your movement, and your life. This isn’t innovation. It’s a digital cage. pic.twitter.com/Fz0FF3mhJx — Jason Bassler (@JasonBassler1) July 18, 2025 I don't know who needs to hear this but any regulatory approved $USD stablecoin with centralized control features is a defacto "CBDC." If the government can freeze your stablecoin funds remotely any time they want it's a bloody CBDC. $BTC $DGB $LTC https://t.co/02h4G3eM8E — Jared Tate © (@jaredctate) July 15, 2025 “This week, the House is voting on the GENIUS Act which lays the groundwork for a layered Central Bank Digital Currency (CBDC) where Americans interact with stablecoins but behind the scenes there are the functional surveillance capabilities of a CBDC. The bill as written does not expressly ban a CBDC and does not protect self-custody. Self-custody means that you control your own money, not a third party,” Rep. Marjorie Taylor Greene (R-GA) said earlier this week. “On Jan 23rd, President Trump signed an executive order on digital financial technology with two important clauses: 1. People will maintain self-custody of digital assets. 2. Banning agencies from establishing a CBDC in the U.S. or abroad,” she continued. “The GENIUS Act does not follow President Trump’s executive order because it does not ban a CBDC. House Leadership did not allow any amendments banning a CBDC. This should NOT be tolerated,” she added. This week, the House is voting on the GENIUS Act which lays the groundwork for a layered Central Bank Digital Currency (CBDC) where Americans interact with stablecoins but behind the scenes there are the functional surveillance capabilities of a CBDC. The bill as written does… pic.twitter.com/GmdgX84SIE — Rep. Marjorie Taylor Greene (@RepMTG) July 15, 2025 More from MarketWatch: Asked if banks will create a consortium, like Zelle, on stablecoins for the industry to defend against a rival stablecoin payment service, or just launch products on their own, Bank of America Chief Executive Brian T. Moynihan said both approaches could be needed — “I think it would be all of the above,” he said. “We already have partnerships with some of them,” Moynihan said. “And so, it will be a complex array and hopefully not complex to the customer, frankly.” Banks may offer individual stablecoin products for their commercial customers, but the broader business will rely on building networks with other groups, including stablecoin companies, he said. “We’ll be there just like we were there when we moved from checks to Zelle,” Moynihan said. “We can move money efficiently, and we have to be aware of the attack on the payment system and we’ll be there to defend it.” Moynihan’s comments on the competition and opportunity offered by stablecoins were mostly reinforced by the CEOs of the top U.S. banks, including Goldman Sachs Group Inc., Citigroup Inc. and JPMorgan Chase & Co., in response to questions from analysts on the topic this week.