Stablecoin Supply to Grow as Much as $75B Following Passage of GENIUS Act, BofA Says

Bank of America’s recent report highlights the significant impact of the GENIUS Act on the future of stablecoins in the U.S. The act, signed into law by President Trump, is viewed as a pivotal moment for stablecoin regulation, paving the way for infrastructure development and fueling growth in the tokenized finance sector.

BofA projects a “relatively modest” increase in stablecoin supply, ranging from $25 billion to $75 billion in the near term. This growth will be fueled by new product launches, infrastructure investments, and competition from tokenized deposits and money market funds. Currently, the total market capitalization of stablecoins sits around $270 billion (according to CoinMarketCap).

Looking ahead two to three years, BofA analysts anticipate consolidation within the stablecoin market and broader adoption of stablecoins and other tokenized assets. This projection is further bolstered by the pending CLARITY Act, which aims to provide a clearer regulatory framework for digital assets in the U.S. by classifying cryptocurrencies as either commodities or securities. The House of Representatives has passed the CLARITY Act, and it now awaits Senate consideration.

The report indicates that banks are actively preparing to issue their own stablecoins, with a preference towards consortium-based models. Bank of America CEO Brian Moynihan confirmed the bank’s readiness to enter the stablecoin market, stating that they have already laid the necessary groundwork and will act when the opportune moment arrives.

While cross-border applications of stablecoins are gaining momentum, the report suggests that most bank executives do not foresee immediate disruption to domestic payment systems. Interestingly, the increased demand for U.S. Treasuries to support stablecoin reserves might lead the Treasury Department to adjust its issuance strategy, potentially favoring short-term bills.

JPMorgan’s separate forecast anticipates the stablecoin market reaching $500 billion by 2028, a figure considerably lower than some more bullish predictions. The convergence of regulatory clarity, technological advancements, and institutional interest positions the stablecoin market for substantial growth and evolution in the coming years.