tl;dr
Citigroup is considering launching its own stablecoin to enhance tokenized finance, focusing on blockchain-based payments and infrastructure to improve settlements and global transfers. The bank is also developing reserve management and crypto custody solutions. CEO Jane Fraser emphasized that this ...
Citigroup is considering launching its own stablecoin as part of an expanded focus on tokenized finance, CEO Jane Fraser revealed during the bank’s second-quarter earnings call. She emphasized their active involvement in the tokenized deposit space, highlighting the importance of blockchain-based payments and infrastructure for traditional financial institutions seeking to streamline settlements and improve global transfers.
Beyond issuing a stablecoin, Citigroup is working on reserve management for stablecoins and developing crypto asset custody solutions. Fraser stressed that the initiative is not merely about competing but about enhancing the bank’s infrastructure to deliver tangible benefits like improved efficiency, transparency, and interoperability to clients in a secure manner.
As digital payments evolve toward 24/7 availability and instant settlement, stablecoins provide a crucial link between traditional finance and crypto-native ecosystems. Fraser explained that Citi’s strategy centers on four pillars: reserve management, custody services, fiat-to-crypto on and off ramps, and tokenized deposits — together forming a strong foundation for Citi’s evolving payments framework.
The stablecoin market has seen explosive growth and is expected to surge from roughly $260 billion currently to over $2 trillion by 2030. Citigroup’s projections include a base case of $1.6 trillion and an optimistic scenario reaching $3.7 trillion. With its focus on trade finance, treasury, and cross-border transactions, Citi sees entering the stablecoin space as a strategic move to capitalize on digital tokens that promise real-time settlement without traditional banking inefficiencies.
While regulatory caution persists, the demand from clients for around-the-clock settlement and transparent processes is turning stablecoins from speculative ventures into vital financial infrastructure upgrades. Citigroup’s push signals a broader trend among major banks to embrace digital assets and blockchain technology to meet evolving client needs and maintain competitive advantage.