This article first appeared on GuruFocus .
Bank of America ( NYSE:BAC ), the U.S. consumer-and-investment banking giant, joined 20 other financial institutions racing to launch a dollar-backed stablecoin as its shares slid approximately 1.2% to $62.28 Friday. The heavyweight group plans to establish a company in 2026 and put the token into circulation during the first half of 2027.
The pitch is simple but ambitious: one dollar of reserves behind every coin, support across public blockchains and a direct attack on institutional settlement, consumer payments and cross-border transfers. A euro-backed token is already next in line, while additional Group of Seven currencies could follow.
The banks have trust, regulatory muscle and enormous distribution. Tether has the harder advantage to steal: more than $180 billion already in circulation and a deeply established network. Bank of America can help build a credible challenger, but winning actual balances will be the real battle. The valuation picture adds pressure, with the $62.28 share price sitting 15.21% above its $54.06 GF Valuea premium that leaves less room for execution mistakes.
