Bank of America CEO Warns Stablecoins Could Drain $6 Trillion in Deposits
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 16 2026
0mins
Should l Buy BAC?
Source: Benzinga
- Deposit Drain Risk: Bank of America CEO Brian Moynihan warns that allowing interest-bearing stablecoins could lead to up to $6 trillion in deposits leaving banks, forcing them to rely on more expensive wholesale funding, which would impact their lending capacity.
- Rate Competition Intensifies: If stablecoins offer a 4% yield while banks pay only 0.1%, depositors are likely to move their funds on-chain, causing banks to lose their low-cost funding source and subsequently raise loan costs.
- Legislative Developments: The Senate's crypto market structure bill released on January 9 prohibits paying interest merely for holding stablecoins while allowing activity-based rewards, highlighting intense lobbying between banks and crypto firms.
- Market Implications: Approval of yield-bearing stablecoins could unlock massive capital flows from traditional banking into on-chain assets, but banks view this as an existential threat to their lending capacity and profit margins, making the legislative battle crucial for the future of crypto competition with banks.
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Analyst Views on BAC
Wall Street analysts forecast BAC stock price to rise
19 Analyst Rating
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 53.460
Low
55.00
Averages
61.64
High
71.00
Current: 53.460
Low
55.00
Averages
61.64
High
71.00
About BAC
Bank of America Corporation is a bank holding company and a financial holding company. Its segments include Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking and Global Markets. Consumer Banking segment offers a range of credit, banking and investment products and services to consumers and small businesses. The GWIM includes two businesses: Merrill Wealth Management, which provides tailored solutions to meet clients' needs through a full set of investment management, brokerage, banking and retirement products and Bank of America Private Bank, which provides comprehensive wealth management solutions. Global Banking segment provides a range of lending-related products and services, integrated working capital management and treasury solutions, and underwriting and advisory services. Global Markets segment offers sales and trading services and research services to institutional clients across fixed-income, credit, currency, commodity, and equity businesses.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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