The supply of stablecoins is expected to increase by up to 11 trillion yen following the establishment of the Genius Act: Bank of America | CoinDesk JAPAN

• Against the backdrop of regulatory clarification under the Genius (GENIUS) law, Bank of America (BofA) anticipates that the supply of stablecoins will increase by up to $75 billion in the short term.
• Banks are probably preparing to introduce stablecoins through a consortium model.
• According to a report by BofA, the growth of stablecoins may boost the demand for short-term U.S. Treasury bills.

Bank of America (BofA) stated that the Genius Act signed by President Donald Trump on July 18 will be a turning point for stablecoin regulation in America and will lay the foundation for infrastructure development and the growth of tokenized finance.

In a report released last week, BofA predicted that the supply of stablecoins, which are cryptocurrency tokens linked to the value of real assets such as fiat currency and gold, is expected to grow in the short term to a "relatively modest" $25 billion to $75 billion (approximately ¥3.68 trillion to ¥11 trillion, based on an exchange rate of 147 yen to 1 dollar) due to product launches, infrastructure investments, and competition with tokenized deposits and money market funds.

According to data from CoinMarketCap, the total market capitalization of stablecoins is currently around 270 billion dollars.

BofA analysts predict that over the next 2 to 3 years, driven by the implementation of the "CLARITY" Act, there will be a consolidation of stablecoins and broader adoption of stablecoins and tokenized assets.

The Clarity Act aims to establish a clear regulatory framework for digital assets in America and classify cryptocurrencies as either commodities or securities. This bill has been passed in the House of Representatives and is scheduled to be discussed in the Senate.

According to a report by BofA, the bank is preparing to issue its own stablecoin, and the management tends to support a consortium-led model.

BofA's CEO Brian Moynihan also stated last week that the bank is preparing to enter the stablecoin market. Moynihan said that BofA has already laid the groundwork and plans to take action at the appropriate time.

While the use of stablecoins across borders is expanding, the report adds that most bank executives do not anticipate short-term disruptions in domestic payments.

On a macro level, BofA points out that the demand for U.S. Treasuries for stablecoin reserves could be a factor that drives the U.S. Treasury to focus on issuing short-term government bonds.