Leading American banks are inching toward stablecoin adoption, signalling a cautious but strategic embrace of digital currency as regulatory clarity begins to take shape. Bank of America has confirmed early-stage development of a US dollar-pegged stablecoin, positioning itself among the first major incumbents to explore tokenised payments as part of its long-term innovation strategy.
Morgan Stanley is also weighing the use of stablecoins, though it remains in the exploratory phase. The firm’s leadership has underlined the importance of understanding client needs and regulatory outcomes before defining any specific use cases. Alongside them, institutions like JPMorgan and Citigroup have expressed growing interest in issuing or engaging with stablecoins, suggesting an industry-wide shift is underway.
This momentum coincides with the emergence of the GENIUS Act – bipartisan legislation gaining traction in Congress that seeks to establish a structured framework for stablecoin issuance. The proposed law mandates that tokens be backed by secure reserves and comply with transparency requirements. Combined with favourable signals from regulators and the Trump administration, these developments are providing traditional financial institutions the green light to cautiously expand into crypto-integrated services.
For the BFSI sector, stablecoins present more than a branding opportunity. They offer a potential overhaul of back-end infrastructure, allowing faster settlements, enhanced liquidity management, and more efficient cross-border payments. Unlike their decentralised counterparts, bank-issued stablecoins could harness existing customer trust and regulatory experience to accelerate institutional adoption.
However, the shift will not happen overnight. Banks are proceeding deliberately, building internal capabilities and seeking partnerships with fintech firms to ensure compliance, resilience, and interoperability. Many are waiting for full legal clarity before committing significant resources, emphasising the need for measured rollout over speculative momentum.
In this evolving environment, the early movers stand to define standards and secure competitive advantage. As regulatory frameworks solidify, stablecoins may become central to next-generation banking, merging digital innovation with the institutional rigour of the financial system.
