Bank of America is set to join the stablecoin game, with CEO Brian Moynihan confirming the lender’s plans to issue a dollar-pegged stablecoin. This move comes as the bank works on an internal build alongside other industry participants, with progress contingent on forthcoming federal rules. Moynihan emphasized the need for the bank to be prepared even though demand for stablecoins remains uncertain.
In the meantime, US lawmakers are discussing legislation that could create a clear regulatory framework for stablecoins. This bill would establish uniform requirements for reserve quality, redemptions, and disclosures, allowing banks like Bank of America to assess the viability of launching a stablecoin.
On the other side of the Atlantic, Societe Generale-FORGE recently introduced USD CoinVertible, a US dollar token native to Ethereum and Solana. This stablecoin complies with the EU’s Markets in Crypto-Assets framework and is the French lender’s second stablecoin offering. BNY Mellon has been appointed as the reserve custodian for the stablecoin, with daily collateral breakdowns set to be published.
Trading for USD CoinVertible is scheduled to begin in early July, allowing for seamless conversion between dollars, euros, and the token. Societe Generale-FORGE CEO Jean-Marc Stenger highlighted the client demand for round-the-clock settlement as the driving force behind the creation of this stablecoin.
In the world of legislation, the Senate recently advanced the GENIUS Act, which aims to regulate stablecoins in the US. The act would require payment stablecoins to maintain one-to-one backing with high-quality liquid assets and segregate reserves from operating funds. With a final vote on the GENIUS Act looming, senators are debating amendments to clarify oversight of non-bank issuers and remove proposed bans on in-kind redemptions.
Overall, the stablecoin landscape is evolving rapidly, with major financial institutions like Bank of America and Societe Generale-FORGE entering the market. Regulatory developments, such as the GENIUS Act, are also shaping the future of stablecoins and providing a clear framework for their operation. It will be interesting to see how these developments unfold in the coming months.