BoA CEO Warns: Stablecoins Could Drain Bank Deposits
Bank of America CEO says stablecoins could drain trillions in bank deposits
Bank of America CEO Brian Moynihan warned that stablecoins could pull a significant share of U.S. bank deposits out of the traditional banking system, depending on how Congress ultimately regulates the sector.
Speaking during the bank’s Wednesday earnings call, Moynihan said as much as $6 trillion in deposits—roughly 30% to 35% of all U.S. commercial bank deposits—could migrate into stablecoins under certain regulatory outcomes.
Moynihan pointed to a U.S. Treasury Department study that he said suggests up to $6 trillion in bank deposits could shift to stablecoins if Congress does not restrict interest-bearing stablecoins.
The comments highlight why stablecoin legislation has become a high-stakes policy issue for both the crypto industry and banks. Stablecoins are typically designed to maintain a stable value—often pegged to the U.S. dollar—and are widely used for digital payments and moving funds across crypto markets.
For banks, the scale of deposit migration matters because deposits are a key source of funding for lending and other core banking activities. Moynihan’s remarks frame stablecoin rules—particularly whether issuers can offer yield or interest—as a central factor that could influence how attractive stablecoins become relative to traditional bank accounts.
