- Bank of America CEO Brian Moynihan agrees that allowing yield-bearing stablecoins could cost community banks over $6 trillion in deposit outflows.
- Moynihan is confident that BoA will weather the storms of deposit outflow, but is more concerned about the rest of the banking industry and the increased cost for credit services for both banks and their customers.
Brian Moynihan, CEO of the Bank of America (BoA), one of the largest Wall Street giants, concurs with the projection that yield-bearing stablecoins could pull over $6 million from the banking system into stablecoins. The BoA boss further elucidated on small and medium-sized enterprises.
BoA CEO Concerned About Impact Of Yield-bearing Stablecoins on Bank Deposits
The Bank of America recently released its financial reports for the fourth quarter of 2025, which included an interview with major executives of the bank, including Moynihan. Renowned Wall Street financial analyst, Gerard Cassidy, raised the issue about stablecoin interests captured in the GENIUS Act and plans by banks to “close a loophole so that the stablecoin deposits cannot pay interest.”
“If they are not — meaning Congress, if they’re not successful in closing that loophole,” asked Cassidy, “what’s kind of the impact that you guys are thinking that could happen from this trend in stablecoin deposits?”
The BoA CEO stated that the banking industry will continue to meet customer demand regardless of whatever happens within the stablecoin ecosystem. He further added that he’s not worried about the effects of stablecoin yields on his institution.
Meanwhile, he cited an April 2025 Treasury Department report that “stablecoins could disrupt traditional banks by drawing away deposits” worth over $6.6 trillion. According to him, this massive potential outflow of banking liabilities could pose a serious threat to traditional finance.
“And so, when you think about that, that takes lending capacity out of the system,” said Moynihan.
“And that is the bigger concern that we’ve all expressed to Congress as they think about this, is that if you move it outside the system, you’ll reduce lending capacity of banks that particularly hurts small-, medium-sized businesses…”
Moynihan sees the banking industry getting “loaned up” with the level of deposit flight that the stablecoins are projected to cause. Without deposits, banks will either be unable to provide loans or they are going to rely on wholesale funding to service their customers’ financial needs.
He pointed out that wholesale funding does not come cheap and would ultimately increase the cost of borrowing for both retail customers and small businesses.
Regardless, he does not think that the ripple effect of capital flight will affect the “course of history of Bank of America.” He believes they can compete against the impact of yield-bearing stablecoins, but is more concerned about how the overall banking industry would stack up against the competition.
Banks on the Crossroads Between Innovation and Legislative Action
The surge in yield-bearing stablecoin dynamics has Wall Street in a precarious position, where they either have to look inwards and innovate on their infrastructure and offerings to counter the rivalry, or lobby lawmakers to block the path forward for stablecoins.
So far, trade groups and the entire banking lobby are pushing lawmakers to counter the threat of deposit flight. Meanwhile, the Treasury says the situation presents an opportunity for traditional financial institutions to “create innovative services and to benefit from the use of blockchain technology.”
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