Bank of America eyes dollar-pegged stablecoin amid Senate fast-tracking GENIUS Act

Bank of America CEO Brian Moynihan confirmed the lender plans to issue a dollar-pegged stablecoin and is working on an internal build conducted alongside other industry participants, Reuters reported on June 11.

However, Moynihan added that any progress in a potential launch would be contingent on forthcoming federal rules. He also told investors the bank “has to be ready” even though demand remains uncertain. 

He added that US lawmakers are discussing legislation that “will allow us to figure out whether there’s really a business proposition,” referring to a bill that would create uniform requirements for reserve quality, redemptions, and disclosures. 

The remarks signal that the second-largest US lender intends to keep pace with its peers in exploring tokenized deposits but will commit only once a clear regulatory perimeter exists.

SocGen issues institutional token

Across the Atlantic, Societe Generale-FORGE introduced USD CoinVertible on June 10, a US dollar token native to Ethereum and Solana. 

The product is the French lender’s second stablecoin, following its 2023 euro version, and complies with the EU’s Markets in Crypto-Assets framework. SG-FORGE appointed BNY Mellon as reserve custodian and will publish daily collateral breakdowns.

Trading through multiple brokers is scheduled to begin in early July, with 24-hour conversion between dollars, euros, and the token. CEO Jean-Marc Stenger said client demand for round-the-clock settlement made a dollar instrument “the obvious next step.”

Senate advances GENIUS Act

These stablecoin developments happened as the Senate voted 68-30 on June 11 to invoke cloture on the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, ending debate and starting a 30-hour countdown to a final vote that needs only a simple majority. 

Majority Leader John Thune launched the post-cloture clock immediately. At the same time, senators prepared to debate a substitute drafted by Senator Bill Hagerty that removes a proposed ban on in-kind redemptions and clarifies oversight of non-bank issuers.

Democrats sought these changes after an earlier cloture attempt failed.

The GENIUS Act would require every payment stablecoin to maintain one-to-one backing with high-quality liquid assets, primarily short-dated US Treasuries or insured deposits, and to segregate reserves from operating funds.

If the Senate adopts Senator Bill Hagerty’s amendment and passes the bill, the House could vote on the exact text without convening a conference committee, potentially accelerating enactment.

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