Bank of America CEO Brian Moynihan warned on January 14, 2026, about up to $6 trillion in deposits potentially shifting to stablecoins if regulators permit yields. Moynihan's warning highlights potential challenges for banking sector stability and lending capacity, impacting market dynamics amid ongoing legislative debates over stablecoin regulation.
Stablecoin Migration Concerns
Brian Moynihan, CEO of Bank of America, issued a warning regarding the potential migration of $6 trillion from bank deposits to stablecoins. This shift could impact commercial banks' capacity to lend if regulatory changes permit stablecoin yields. Moynihan stated, "up to $6 trillion in U.S. commercial bank deposits—roughly 30-35% of total deposits—could shift to interest-bearing stablecoins" if regulators permit yields, thereby reducing banks' lending capacity.
During a recent earnings call, Moynihan drew a comparison between stablecoins and money market funds. He expressed concerns about the potential diversion of reserves, such as Treasurys, away from bank lending activities.
Impact on Bank Lending
Bank of America's warning suggests that significant shifts in financial dynamics could occur. If stablecoin yields are permitted, banks might experience reduced deposits, which would challenge their lending operations. Financial stakeholders are closely monitoring potential legislative changes. The Bank Policy Institute has discussed concerns about a potential $6.6 trillion stablecoin migration, echoing the impact on banking liquidity.
Historical Parallels with Money Market Funds
These potential shifts echo historical precedents within the financial industry, where adjustments in money market funds affected traditional banks. This highlights the potential for volatility in financial systems based on such market dynamics.
Experts emphasize the importance of analyzing historical trends to gauge the potential effects of stablecoin adoption. The available data suggests that substantial shifts in financial behaviors are possible.