Bullish on clear regulation! US banks consider entering the Stable Coin market, focusing on international trade and cross-border payments

Brian Moynihan, CEO of the second largest commercial bank in the United States, Bank of America (BOA), recently stated that if the United States passes relevant laws, the bank will consider the issuance of Stablecoin. With Congress actively promoting regulatory bills, officials from the Federal Reserve (Fed) also support banks entering the Stablecoin market, indicating that digital dollar assets are gradually integrating into the TradFi system.

Bank of America is expected to join the issuance stablecoin ranks

"Fortune" magazine reported that Brian Moynihan, CEO of (Bank of America, BoA), recently revealed at the (Economic Club of Washington DC) in Washington that if the United States passes comprehensive Stable Coin regulatory legislation, the bank will consider issuing its own Stable Coin:

If this is legally allowed, we will enter this market.

Moynihan also added that "Bank of America may offer a dollar-pegged coin linked to customer deposit accounts," but did not disclose further details about the specific product.

With the active promotion of Stable Coin regulation by the US government, it is generally believed that under the influence of crypto-friendly regulation led by US President Trump, Stable Coin will play a greater role in international trade, further consolidating the global dominance of the US dollar, and attracting Stable Coin issuance companies to settle in the United States.

As described in the report jointly issued by Standard Chartered Bank and Zodia Markets, after the clear stablecoin regulatory framework is introduced, the proportion of stablecoin in the US M2 currency supply and foreign exchange transactions is expected to grow 10 times to 10%, with cross-border payments and non-dollar stablecoin being seen as the main breakthrough.

(Standard Chartered Bank report: Stable Coin is the first killer application, and US friendly policies will help grow it tenfold)

Regulating Stablecoin issuance has become a legislative priority in the United States

The U.S. Congress has recently introduced multiple bills related to Stable Coin, mainly the "STABLE Act" in the House of Representatives and the "GENIUS Act" in the Senate, attempting to accelerate the establishment of relevant regulations in aspects such as reserve management, transparency, integration with TradFi systems, and delineation of regulatory authority, in hopes of keeping up with the rapid expansion of this market.

(The U.S. Stable Coin Act is on the horizon, with JPMorgan questioning the adequacy of Tether's reserves. Can the USDT market be abandoned?)

Meanwhile, financial products based on Stable Coins have been emerging one after another, including the interest-bearing Stable Coin YLDS from the financial technology startup Figure Markets, as well as the decentralized interest-bearing Stable Coin projects Pi Protocol and USP founded by Reeve Collins, co-founder of Tether, aiming to capture a share of the current $224.1 billion Stable Coin market.

( Blockchain startup Figure runs ahead! The first interest-generating Stable Coin product YLDS has been approved and registered as a "security" )

The Fed supports banks issuanceStable Coin, participating in encrypted business

It is worth mentioning that various government units in the United States seem to have expressed a friendly stance on encryption policies.

(Fed Chairman Powell: Banks can legally engage in crypto business, manage risks well, and learn from SVB lessons)

Federal Reserve Board Governor Christopher Waller said in a meeting on February 7 that Stable Coin brings opportunities for cross-border payments and international trade, and should be open for banks and non-bank institutions to participate in issuance under regulation.

I see many new private enterprises looking for ways to explore the application of Stable Coin in the retail payment field.

(FED on the future of digital currency and payment: Stable Coin will consolidate the dominance of the US dollar, no need to forcefully introduce CBDC)

Due to the low cost and almost instant settlement time of Stablecoin, this digital coin built around the coin has become the preferred choice for cross-border payments and remittances. Compared to the TradFi mechanism, Stablecoin has faster transaction speeds and lower costs, and may even change the global payment ecosystem.

This article looks forward to clear regulation! Bank of America considers entering the Stable Coin market, with international trade and cross-border payments as the focus first appeared on Chain News ABMedia.