Major U.S. banks, including Bank of America, Citigroup, JPMorgan, and Wells Fargo, are discussing expanding into cryptocurrencies and stablecoins as regulatory signals improve. Initial moves are expected to be cautious, focusing on pilot programs, partnerships with crypto firms, and limited crypto trading. Some large banks are exploring the issuance of a joint stablecoin, with discussions in early stages and potential action pending U.S. legislation. Bank of America CEO Brian Moynihan has indicated the bank could launch stablecoins if permitted, while Morgan Stanley is considering roles as a middleman for crypto transactions and adding crypto to its e-trade platform. Charles Schwab plans to offer spot crypto trading within a year, following positive signals from regulators. Most banks are likely to enter custody businesses through partnerships with existing crypto firms due to concerns about risk and thin margins. Banks remain cautious about being first movers, citing the need for clearer guidance on anti-money laundering compliance and consistent regulations across agencies. The working group on crypto, led by Trump-appointed crypto czar David Sacks, currently lacks representation from banking regulators. Stablecoins have processed over $27 trillion in 2024, surpassing Visa and Mastercard combined. Stablecoin companies, such as Tether—the 19th largest holder of U.S. debt—are major buyers of U.S. Treasuries. President Donald Trump has pledged to boost digital asset adoption and aims to create a strategic bitcoin reserve.