BofA Chief Warns Stablecoins Could Push Trillions Out of U.S. Banks

Brian Moynihan, CEO of Bank of America, issued a stark warning about stablecoins during a recent earnings call, telling analysts that as much as $6 trillion in deposits could migrate from the U.S. banking system into stablecoins—roughly 30% to 35% of total U.S. commercial bank deposits, Pooja Rajkumari reported for The Street.

Stablecoin structures have been likened to money market mutual funds, as reserves are typically held in short-term instruments such as U.S. Treasurys rather than recycled into traditional lending.

Moynihan cited U.S. Treasury Department studies for the projection, noting ongoing tensions between lawmakers, regulators, and financial institutions over how interest-bearing stablecoins could reshape the banking landscape.

He likened stablecoin structures to money market mutual funds, explaining that reserves are typically held in short-term instruments such as U.S. Treasurys rather than recycled into traditional lending.

“If you take out deposits, banks either won’t be able to lend or they’ll have to rely on wholesale funding, which comes at a cost,” Moynihan said.

He warned that a massive deposit exodus could undermine banks’ ability to issue credit to households and businesses—a cornerstone of U.S. economic activity.

Moynihan’s remarks coincide with renewed legislative focus on stablecoins.

The latest version of the Senate crypto market structure bill, released by Senate Banking Committee Chair Tim Scott on Jan. 9, includes provisions banning digital asset service providers from paying interest or yield to users simply for holding stablecoins.