Bank of America: The disruptive application of stablecoins in cross-border P2P payments may generate a demand for up to $75 billion in annualized US debt.

The latest research report from Bank of America Corp provides a deep analysis of the potential transformative power of stablecoins in the financial system, pointing out that although this digital asset faces regulatory controversies, it has already demonstrated unique advantages in cross-border transactions, retail settlements, and other areas. The report explicitly states that peer-to-peer (P2P) payments across borders are the most disruptive application scenario for stablecoins - compared to traditional banking systems, their settlement efficiency and cost advantages are significant, and they could become an important channel for fund flows in emerging markets. It is worth noting that Shopify's decision to allow merchants to accept USDC stablecoins has been seen as a landmark event in the retail sector penetration, and the recent completion of a repurchase transaction for UST tokenized bonds on the chain further highlights institutional investors' recognition of the settlement function of stablecoins. In terms of market demand, Bank of America estimates that the potential demand for stablecoins for US Treasuries in the next 12 months could reach $25 billion to $75 billion, but in the short term, it is not enough to reverse the supply-demand imbalance in the bond market. Of greater note is the impact on money market funds (MMFs): some MMF clients have already stated that they will accelerate the tokenization process, providing real-time interest payments through on-chain systems to cope with competitive pressures. For example, with stablecoins issued by Circle (CRCL.US), the Coinbase platform circumvents the ban on interest payments in the Financial Innovation Act (GENIUS) through a reward mechanism, reflecting an innovative path for the market to avoid regulation. There is a clear divergence in attitudes between the banking industry and the retail sector. Citigroup CEO Jane Fraser bluntly stated that customers' lack of readiness for operating on-chain technology is the main obstacle at present, reflecting the cautious stance of traditional financial institutions on stablecoins. In contrast, retail giants such as Amazon.com, Inc. (AMZN.US) and Walmart Inc. (WMT.US) are exploring the use of incentive measures to push merchants to adopt stablecoin settlements through their vast supply chain networks, attempting to build a closed-loop ecosystem. This contradiction precisely confirms the core point of the research report: the promotion of stablecoins not only requires the improvement of technical infrastructure but also depends on precise integration with use cases. On the regulatory front, the loopholes in the GENIUS Act have become a focus of the industry. Although the act prohibits stablecoin issuers from directly paying interest, a mechanism for rewarding users can still be achieved through cooperation with exchanges and other channels. Bank of America Corp's Policy Research Institute (BPI) warns that allowing such a "proxy interest" model could lead to a massive flow of bank deposits to on-chain systems, threatening credit supply and economic stability. This controversy highlights the balancing act policymakers face between financial innovation and risk control. Looking ahead, Bank of America proposes a long-term vision of "on-chain financial asset trading": as public blockchain interoperability improves and digital wallets become more widespread, some financial assets will achieve full on-chain circulation, significantly reducing the demand for fiat currency exchanges. However, this transformation will require several years and billions of dollars in infrastructure investment, presenting equal opportunities for traditional Financial Institutions, Inc. and digital native platforms. The report emphasizes that the development of stablecoins and tokenized assets will be an incremental revolution, and their final form may exceed current market imagination, but they are clearly pointing towards a more efficient, inclusive global financial system.