Citi's Blockchain Strategy Unifies Disparate Financial Systems

Citigroup Inc. has reaffirmed its commitment to blockchain technology, asserting that the innovation is "here to stay" on Wall Street amid growing regulatory clarity and institutional adoption. The bank's head of enterprise digital assets, Artem Korenyuk, emphasized this stance in a recent interview with Fortune, highlighting the synergy between blockchain and traditional finance as regulatory frameworks evolve. The Trump administration's passage of the Genius Act in July, which established clear rules for stablecoins, has accelerated this integration, according to Korenyuk. "Blockchain is here to stay," he stated, noting the technology's potential to streamline financial systems through programmable infrastructure and tokenization.

Citi's Citi Token Services program, which utilizes a private blockchain to facilitate 24/7 institutional payments, exemplifies the bank's early foray into blockchain-based solutions. While the platform's scope is currently limited to institutional clients, it demonstrates how distributed ledger technology (DLT) can unify disparate financial systems. Korenyuk pointed to the inefficiencies in traditional markets-separate systems for cash, securities, and debt-as a key area where blockchain's standardized architecture could drive economies of scale and reduce friction.

The Genius Act has also spurred Citi to explore broader applications of blockchain, including stablecoins and tokenized assets. CEO Jane Fraser confirmed in July that the bank is actively considering issuing its own stablecoin, a move aligned with the Trump administration's pro-crypto policies and relaxed Federal Reserve rules. Fraser attributed the shift to the Genius Act's role in reducing regulatory uncertainty, enabling banks to innovate without excessive oversight. Citigroup is also investigating tokenized deposits and crypto custody services, reflecting a strategic pivot toward digital assets as cross-border payment demand grows.

Citi's investment in stablecoin infrastructure further underscores its blockchain ambitions. In October 2025, the bank's venture capital arm, Citi Ventures, backed BVNK, a startup developing global stablecoin payment rails. BVNK's technology allows seamless fiat-to-crypto conversions, a critical feature for expanding cross-border transactions. Chris Harmse, BVNK's co-founder, noted that the Genius Act's regulatory clarity has fueled demand for such infrastructure, positioning U.S. banks like Citi to lead the next phase of digital payments.

The bank's optimism is supported by its own forecasts, which project stablecoin issuance could reach $1.9 trillion by 2030 under a base-case scenario, up from $280 billion in 2025. In a revised report, Citi analysts cited rapid market growth and institutional adoption as key drivers, with stablecoins potentially supporting nearly $100 trillion in transaction activity by 2030. The report also highlighted the coexistence of stablecoins, tokenized deposits, and central bank digital currencies (CBDCs) as complementary tools for modernizing finance.

While Citi acknowledges challenges, including regulatory scrutiny of tokenized stocks and stablecoin yield programs, the bank remains focused on leveraging blockchain's efficiencies. Korenyuk noted that new applications, such as tokenized equities, are under close review, though the SEC's recent reaffirmation that tokenized stocks remain securities has added complexity. Nevertheless, Citi's strategic investments and regulatory engagement signal a long-term bet on blockchain's role in reshaping financial infrastructure.

Source: [1] Fortune (https://fortune.com/crypto/2025/10/09/citi-blockchain-digital-asset-treasuries-wall-street/)

[3] Coinpedia (https://coinpedia.org/news/citi-eyes-stablecoin-launch-after-trumps-crypto-policy-shift/)

[5] Citi Institute (https://www.citigroup.com/global/insights/stablecoins-2030)

[7] CNBC (https://www.cnbc.com/2025/10/09/biti-bvnk-stablecoin-banks-crypto.html?msockid=1d4db8df230363991bddae5f22b96292)

[9] Reuters (https://www.reuters.com/sustainability/boards-policy-regulation/crypto-race-tokenize-stocks-raises-investor-protection-flags-2025-10-08/)