Bank of America chief executive Brian Moynihan said the bank is prepared to adapt to the growing role of stablecoins in mainstream finance, while cautioning that the broader banking system could face significant pressure if large volumes of deposits migrate onto blockchain-based products. Speaking at a Bank of America investor conference following the release of fourth quarter results, Moynihan said the institution itself would be fine, but warned that as much as six trillion dollars in deposits could be at risk across the industry. Such a shift, he argued, could weaken banks’ ability to fund loans and ultimately raise borrowing costs for households and businesses.
Moynihan emphasized that deposits are not merely transactional balances but a core funding source that underpins lending activity. If stablecoins and related products attract savings away from traditional banks, lenders may be forced to rely more heavily on wholesale funding markets, which typically come with higher costs and greater volatility. That dynamic could reduce credit availability, particularly for small and midsize businesses that depend on bank lending. The concern is amplified by the emergence of stablecoin structures that resemble interest-bearing alternatives, even when issuers are formally prohibited from paying yield directly.
The comments come amid ongoing debate in Washington over the regulatory framework for dollar-pegged digital assets. The GENIUS Act, signed into law last year, established federal oversight for stablecoin issuers but left unresolved questions around yield-like incentives and competitive parity with bank deposits. Lawmakers have since been considering adjustments through a broader crypto market structure bill, though progress has slowed in recent weeks. Banking groups have argued that without stronger guardrails, stablecoins could function as deposit substitutes without being subject to the same capital, liquidity, and consumer protection requirements.
Moynihan’s warning echoes concerns raised by the American Bankers Association, which has urged lawmakers to close what it describes as loopholes that allow stablecoin issuers to attract savings indirectly. Community and regional banks, in particular, fear that deposit outflows could erode their primary funding base. Not all large lenders share the same sense of urgency, however, with some arguing that stablecoins and traditional deposits will serve complementary roles. Still, with Bank of America ending 2025 with roughly two trillion dollars in deposits, the scale of potential disruption has become increasingly central to policy and market discussions.
