Bank of America Eyes Stablecoins to Help Move Trillions in Client Transactions
Bank of America (BoA) has confirmed that it is actively exploring the use of stablecoins to modernize its payment infrastructure, potentially transforming the way trillions of dollars in client funds are transferred through its systems daily.
During BoA’s Q2 2025 earnings call, CEO Brian Moynihan discussed the bank’s initial strategy around stablecoin integration, revealing that the focus is currently on using stablecoins as a transactional mechanism—a notable shift for one of the world’s largest financial institutions.
“We believe that if they [clients] want to use stablecoins to move part of that money, they’ll move,” Moynihan said, referring to stablecoin rails that facilitate dollar- and euro-based transactions.
From Exploration to Execution
BoA has been researching stablecoin usage since early 2025, with Moynihan reiterating the bank’s readiness to move forward pending regulatory clarity. The institution has reportedly discussed the possibility of joint stablecoin issuance in partnership with JP Morgan and Citigroup.
“We’ve done a lot of work. We’re still trying to figure out how big or small it is… So you’d expect us all to move,” Moynihan noted.
Though the CEO emphasized the exploratory nature of the current effort, he acknowledged stablecoins’ potential to streamline financial movement at scale, especially in areas where traditional rails underperform or lack efficiency.
Stablecoin Market Momentum Continues
BoA’s interest comes amid rapid market expansion and a regulatory push to formally define the role of fiat-pegged digital assets in the U.S. financial system:
- Stablecoin transaction volume exceeded those of Visa and Mastercard combined in 2024.
- Total market capitalization has soared to $257 billion, nearly doubling since early 2023.
- Tether (USDT) and Circle’s USDC together account for over 85% of that total.
Industry experts increasingly regard stablecoins as the “default settlement layer” for digital commerce and cross-border financial exchange.
Legislation as a Catalyst: GENIUS Act Faces Delay
The GENIUS Act, a sweeping bill that would establish a federal framework for stablecoin issuance and compliance, has been a key enabler for traditional banks like BoA to move forward. The bill passed the Senate in June with bipartisan support, but encountered a procedural roadblock in the House this week.
Despite the delay, House leadership has signaled that the GENIUS Act could receive a floor vote by Thursday, marking a potential turning point for U.S. banks seeking to enter the stablecoin sector under clear rules.
Mixed Q2 Earnings Amid Strategic Shift
BoA also reported mixed financial results for Q2:
- Net income rose 3% to $7.12 billion, beating expectations.
- Revenue increased 4% to $26.61 billion, though slightly below forecasts.
As competition heats up and stablecoins become central to next-gen finance, Bank of America’s cautious but deliberate entrance into the space signals that the tokenization of traditional banking services is no longer theoretical—it’s underway.
@ Newshounds News™
Source: Cointelegraph
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Tether in Trouble as GENIUS Act Targets USDT — Is a Market Collapse Ahead?
Crypto analyst Jacob King is raising alarms about what he describes as the potential “bloodiest event in Bitcoin’s modern history,” warning that the GENIUS Act could effectively lead to the ban of Tether (USDT) and spark a devastating collapse across the broader crypto market.
The GENIUS Act—currently gaining momentum in Congress—aims to regulate stablecoins, but King claims the legislation puts Tether directly in the crosshairs, threatening the entire structure of Bitcoin liquidity and trading volume.
Tether Printing Sparks Alarm
According to King, Tether’s recent minting of 160 billion USDT is a desperate attempt to inflate Bitcoin and crypto markets artificially. He argues that USDT is being “printed out of thin air” to prop up prices, a criticism that has long dogged Tether amid transparency concerns and accusations of insufficient reserves.
“Without Tether, people will realize how fake everything has been,” King stated.
King suggests that 85–90% of daily Bitcoin volume is dependent on USDT, a metric he argues underscores the fragility of the entire crypto ecosystem.
Institutional Outflows & Insider Moves
Further stoking fears, King cites a surge in ETF outflows this week as evidence that institutions are quietly exiting the market. He contends that major players are shedding Bitcoin positions while retail investors remain largely unaware of what’s happening behind the scenes.
King also accuses Tether insiders of dumping Bitcoin via OTC trades, insulating themselves ahead of what he claims is an inevitable collapse.
GENIUS Act: Regulation, Not a Ban
Despite the ominous outlook, the GENIUS Act does not outright ban Tether. Instead, it provides 18–36 months for existing stablecoin issuers to achieve compliance, offering a regulatory pathway rather than an immediate shutdown.
In fact, market data contradicts King’s thesis:
- ETF flows have shown net inflows, not the “mass exits” King suggests.
- Tether remains the dominant stablecoin, with over $100 billion in circulation, despite persistent scrutiny.
Ripple’s RLUSD and the Future of Stablecoins
As the GENIUS Act advances, new contenders like Ripple’s RLUSD may begin to take market share, particularly as regulatory clarity favors compliant, transparent issuers. If Tether falters under legislative pressure, Ripple’s offering could emerge as a leading alternative for institutional-grade stablecoin use.
Conclusion: Panic or Perspective?
While Jacob King’s analysis has ignited debate, his claims—lacking concrete evidence—should be viewed as highly speculative. Still, his warnings highlight the precarious balance in a market heavily reliant on a few centralized stablecoin providers.
The GENIUS Act marks a turning point in U.S. crypto regulation. Whether it ushers in collapse or evolution depends on how both the industry and regulators respond in the months ahead.
@ Newshounds News™
Source: Coinpedia
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Trump’s Economic Nationalism Escalates, Pressures India and BRICS
President Donald Trump’s aggressive tariff strategy is intensifying economic tensions between the U.S. and the BRICS bloc, particularly India. Trump has announced a blanket 10% tariff on all BRICS member imports, along with a potential 200% levy on pharmaceutical products—a move that could spark a U.S.-India trade war and severely disrupt global supply chains.
Key Developments:
- Trump announces 10% tariff on all BRICS bloc imports
- 200% tariffs proposed on pharmaceutical imports, targeting India’s key export sector
- India exported $9.8 billion in pharmaceuticals to the U.S. in 2024–25, accounting for over 30% of Indian drug exports
- BRICS dollar trade initiatives face rising pressure from U.S. trade protectionism
- Indian copper exports and broader industrial sectors also threatened by tariff escalation
BRICS Under Economic Siege
Trump’s sweeping tariffs are not just economic measures—they represent a symbolic strike against the BRICS alliance, which has grown into a major counterbalance to U.S. economic hegemony. BRICS accounts for 32% of global GDP and over 40% of the world’s population. Many BRICS members are actively working to reduce dependency on the U.S. dollar, a shift that threatens longstanding U.S. advantages in global trade.
According to data from the Office of the United States Trade Representative (USTR), U.S. imports from BRICS nations totaled $886 billion in 2024. A 10% tariff across the board would impose $88 billion in additional duties, potentially slowing BRICS economic growth and disrupting dollar decoupling initiatives. India, a key BRICS member and strategic U.S. partner, is now caught between bloc solidarity and bilateral dependency.India’s Pharmaceutical Sector in the Crosshairs
The proposed 200% tariff on pharmaceutical imports directly targets India’s export strength. In 2024–25, India shipped $9.8 billion in pharmaceuticals to the U.S., a 21% increase year-over-year. These exports account for more than 30% of India’s total drug exports, supplying critical medications across various segments of the American healthcare system.
The tariffs could raise drug prices dramatically, impacting millions of Medicare and Medicaid recipients, especially in high-demand states like Texas, California, and Florida. This cost shock could reshape the political landscape, as vulnerable populations feel the squeeze of U.S. protectionism in the most sensitive area—healthcare.
Strategic Trade War Implications
Trump’s tariff escalation marks a turning point in global trade strategy, especially for India. A proposed 50% tariff on Indian copper exports threatens $360 million of industrial shipments to the U.S., undermining producers in states like Gujarat and Tamil Nadu. The broader $150–200 billion India–U.S. trade proposal now faces deep uncertainty.
India has made clear that it will not offer further concessions, signaling a hardened position in trade negotiations. The economic fallout from these tariffs could accelerate BRICS efforts to bypass the U.S. dollar and deepen intra-bloc cooperation in supply chains, technology, and trade infrastructure.
BRICS May Emerge More United
While the U.S. may be aiming to weaken BRICS influence through punitive trade measures, the effect could be the opposite. Instead of fracturing the alliance, Washington’s economic aggression may galvanize BRICS unity, especially on initiatives like alternative payment systems, blockchain integration, and currency de-dollarization.
India’s delicate position—balancing historic ties with Washington and its growing role within BRICS—could force major diplomatic recalibrations across Asia, Africa, and Latin America.
@ Newshounds News™
Source: Watcher Guru
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