Bank of America Warns of $6 Trillion Deposit Flight to Yield-Bearing Stablecoins
Bank of America has issued a stark warning about the potential disruption stablecoins could bring to traditional banking if they begin offering yield-bearing features. CEO Brian Moynihan highlighted the risk during the bank's quarterly earnings call, projecting a possible outflow of up to $6 trillion in deposits from US banks to such digital assets.
The analysis underscores how yield-generating stablecoins could fundamentally alter liquidity dynamics in the financial system. With institutional and retail investors increasingly seeking higher returns, banks may face unprecedented competition from crypto-native products that combine stability with yield.