BoA CEO warns stablecoins could drain trillions from deposits
Bank of America CEO says stablecoins could drain trillions in bank deposits
Bank of America CEO Brian Moynihan warned that stablecoins could draw a significant share of U.S. bank deposits away from 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—about 30% to 35% of all U.S. commercial bank deposits—could migrate into stablecoins under certain regulatory outcomes.
Moynihan tied the figure to a U.S. Treasury Department study, which he said suggests up to $6 trillion in bank deposits could shift to stablecoins if Congress does not restrict interest-bearing stablecoins. Interest-bearing stablecoins are designed to maintain a stable value, typically pegged to the U.S. dollar, while also offering holders a yield.
The comments highlight why stablecoin policy has become a central issue for both crypto and banking. Bank deposits are a key funding source for banks, supporting lending and other financial activities. A large-scale movement of deposits into stablecoins could therefore reshape how money is held and moved across the financial system.
Moynihan’s remarks reflect growing attention from large banks to how stablecoins may develop if regulatory rules allow them to function more like deposit alternatives, particularly when they offer interest.
