TLDR
- Bank of America launched a new weekly digital asset report focused on blockchain and stablecoin developments.
- The report identified Ethereum as a leading infrastructure for the expanding stablecoin market.
- Ethereum hosts over half of all stablecoins in circulation and supports major payment integrations.
- U.S. legislative developments like the GENIUS stablecoin bill are expected to influence Ethereum’s adoption.
- The Treasury projects the stablecoin market could grow to $2 trillion within five years.
Ethereum is gaining momentum as Bank of America releases its new “On Chain” digital asset research. The report focuses on Ethereum’s central role in the growing stablecoin ecosystem. This shift signals a rising institutional interest in blockchain infrastructure and stablecoin integration.
Ethereum Gains Early Attention in Digital Asset Research
Bank of America began its weekly digital asset report by highlighting Ethereum as a primary infrastructure for stablecoins. The report positioned Ethereum as a gateway for investors aiming to access the stablecoin market. Ethereum’s network already hosts more than 50% of all circulating stablecoins.
BofA launches new weekly periodical ‘On Chain,’ designed to “drill into the various facets of the fast-evolving digital assets ecosystem.”
First call: Bullish ETH pic.twitter.com/sERRZiTgMq
— matthew sigel, recovering CFA (@matthew_sigel) July 14, 2025
This selection reflects Ethereum’s dominance in handling large-scale decentralized finance applications and settlements. The bank pointed out Ethereum’s position as a leading protocol supporting dollar-pegged assets. This comes as Ethereum’s market relevance continues to increase despite being early in its current cycle.
Ethereum’s utility as a digital rail supports both private and institutional stablecoin activity. The bank emphasized Ethereum’s ability to manage smart contracts and its integration with key payment providers. Stripe was also named alongside Ethereum as a strategic player in this emerging segment.
Stablecoin Legislation Boosts Ethereum Sentiment
Bank of America underlined that crypto-related legislation in the U.S. could define the future of digital finance. The GENIUS stablecoin bill gained specific attention as it aligns with the administration’s stablecoin priorities. BofA cited recent policy remarks that stablecoins could reinforce U.S. dollar strength.
As crypto policy discussions return to the House, Ethereum stands to benefit from regulatory clarity. The report connected legislative progress with market confidence in blockchain infrastructure. The GENIUS Act and others in debate could directly impact Ethereum’s long-term integration in finance.
Ethereum’s design allows it to comply with future stablecoin regulations while maintaining decentralized integrity. Its compatibility with tokenized fiat and programmable nature support widespread financial utility, positioning Ethereum as a foundational layer for regulated digital dollars.
Institutional Forecasts Favor ETH’s Role
The Treasury projects the stablecoin market will reach $2 trillion in five years. Ethereum is expected to be a core layer in that expansion. Its scalable infrastructure supports large volumes of stablecoin transfers and settlement operations.
Fundstrat CIO Thomas Lee compared stablecoins to major digital innovations and expects Ethereum to gain network revenue from this shift. BitMine’s decision to use Ether as a reserve asset signals a growing trend in institutional adoption. Ethereum’s role now expands beyond DeFi into broader financial systems.
Alongside stablecoins, Ethereum is also seeing rising demand from tokenization sectors. BlackRock projects significant growth in tokenized assets, where Ethereum supports real-world asset digitization.
