
Bank of America expects to launch stablecoins as Morgan Stanley weighs use
NEW YORK (Reuters) -Bank of America has been working on stablecoins like the rest of the industry and investors can expect the lender to move forward on this, CEO Brian Moynihan said on Wednesday, without giving a timeline.
"We feel both the industry and ourselves will have responses. We've done a lot of work," the CEO of the second-largest U.S. bank said.
"We are still trying to figure out how big or small it is, because in some places there are not big amounts of money movement. So you would expect us all to move, our company to move on that," Moynihan told analysts on a post-earnings conference call.
Stablecoins, a type of cryptocurrency designed to maintain a constant value, are usually pegged to a fiat currency such as the U.S. dollar and are commonly used by crypto traders to move funds between tokens.
Moynihan said Bank of America was still trying to understand client demand, which was not high at this point, and would roll out a stablecoin at an appropriate time, likely in partnership with other players.
U.S. President Donald Trump has promised to be the "crypto president," popularizing its mainstream use in the country.
Meanwhile, Wall Street lender Morgan Stanley said that it was still weighing its options.
Chief Financial Officer Sharon Yeshaya said the bank was following stablecoin developments closely.
"As you would expect we are actively discussing it. We're looking both at the landscape, the uses and the potential uses for our own client base. But, it really is a little early to tell, especially for the businesses we run versus businesses that you might see from competitors, on how a stablecoin would play in," she added.
(Reporting by Nupur Anand in New York. Additional reporting by Manya Saini in Bengaluru. Editing by Mark Potter)
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


The Star
2 hours ago
- The Star
Fitch cuts Finland's credit rating amid rising debt
FILE PHOTO: A Finnish flag flies over the City Hall in Helsinki, Finland, February 10, 2024. REUTERS/Tom Little/File photo HELSINKI: Finland suffered its first downgrade in almost a decade after Fitch Ratings cut the Nordic country's credit rating over its failure to rein in ballooning debt. Fitch late last Friday lowered Finland's long-term rating by one level to AA from AA+, the lowest credit grade among the top three rating companies, almost a year after it issued a negative outlook on the debt. Finland's rating at Fitch is now the third-highest, eight levels above junk. 'Finland's high government debt remains on an upward trajectory, and we do not anticipate sufficient fiscal consolidation to stabilise debt over the medium term,' Fitch said in a statement. The news comes as the government of Prime Minister Petteri Orpo is attempting to right the course of public finances, which have suffered from consecutive deficits since 2009. The Cabinet's stated target is to stabilise the debt-to-gross domestic product (GDP) ratio in 2027. In April, the coalition Cabinet unveiled a €2.3bil (US$2.7bil) package of measures to kickstart growth and investment in the subdued economy. Lower income and corporate tax rates, as well as a smaller levies on food and medicines, are aimed at boosting purchasing power as the economy gradually recovers from two years of contraction, helped by a series of interest-rate cuts by the European Central Bank. Underlying the efforts is an unaddressed structural shift in the export-led country's industries. Successive governments have failed to rein in spending to match the loss of income from key industries, including papermaking and consumer electronics. 'Fitch assesses that the measures already decided are insufficient to stabilise the debt ratio over the medium term, given the high level of government spending (57.7% of GDP in 2024) due to ageing-related costs, social spending and increased defence spending,' it said. — Bloomberg


The Sun
2 hours ago
- The Sun
Starmer to discuss Gaza crisis and trade with Trump in Scotland
TURNBERRY: UK Prime Minister Keir Starmer is set to press US President Donald Trump on the worsening humanitarian crisis in Gaza and stalled ceasefire talks when they meet at Trump's Scottish golf resort. The discussions will also cover trade cooperation following a recent UK-US deal and efforts to resolve Russia's war in Ukraine. Starmer is expected to emphasise the urgent need for a ceasefire in Gaza, where hunger and suffering continue to escalate. A Downing Street spokesperson said the prime minister would welcome US efforts to mediate through Qatar and Egypt while pushing for more action. 'He will discuss what more can be done to secure the ceasefire urgently, bring an end to the unspeakable suffering and starvation in Gaza, and free the hostages,' the spokesperson added. Trump, who arrived in Scotland earlier this week, acknowledged the crisis but stressed that Gaza's plight is an 'international problem' requiring broader contributions. 'It's not a US problem,' he said, after announcing additional US aid. The meeting follows a landmark US-EU trade agreement that averted a potential tariff war. Starmer and Trump will review progress on the UK-US trade deal signed in May, which lowers tariffs on certain British exports but has yet to take full effect. Domestically, Starmer faces pressure to follow France's lead in recognising Palestinian statehood, with over 220 UK MPs backing the move. However, the Downing Street statement did not mention this issue. After their talks, the leaders will travel to Aberdeen, where Trump is scheduled to open a new golf course. The US president has combined leisure and diplomacy during his five-day visit, raising questions about the overlap between his official duties and business interests. - Reuters


The Star
3 hours ago
- The Star
US commerce secretary says Trump really likes TikTok, but app has to move to US ownership
FILE PHOTO: A man films a TikTok video outside the U.S. headquarters of the social media company TikTok in Culver City, California, U.S. January 18,2025. REUTERS/Fred Greaves/File Photo WASHINGTON (Reuters) -U.S. President Donald Trump likes TikTok but the Chinese-owned short video app, used by some 170 million Americans, has to move to U.S. ownership, Secretary of Commerce Howard Lutnick said on Sunday. "The President really likes TikTok, and he said it over and over again, because, you know, it was a good way to communicate with young people," Lutnick said in an interview on Fox News Sunday with Shannon Bream. "But let's face it, you can't have the Chinese have an app on 100 million American phones, that is just not okay. So, it's got to move to American ownership, it's got to move to American technology, American algorithms," he said. "I know the President is positive towards TikTok, if it can move into American hands." (Reporting by Ahmed AbouleneinEditing by Marguerita Choy)