Citigroup Explores Issuing Stablecoin Amid Digital Asset Push

Citigroup, one of the largest banks in the United States, has confirmed that it is now looking into the possibility of issuing its own stablecoin. This move sets the bank up alongside other major entities like JPMorgan Chase, who are taking steps to enter the digital asset space. Citigroup CEO Jane Fraser recently announced during an earnings call that the bank is “looking at the issuance of a Citi stablecoin.” She also revealed that the bank is heavily focused on tokenized deposits, which are blockchain-based representations of funds contained in regular bank accounts.

Fraser outlined even more plans that include reserve management services for stablecoins and custody solutions for cryptocurrencies. According to Fraser, this move is more and more in line with Citigroup’s long-term vision, and would be a “good opportunity” for the bank. Citigroup’s bullishness on stablecoins isn’t new. Back in April, the bank’s research division released a report predicting that the global stablecoin market could reach $3.7 trillion by 2030. That estimate may have seemed overly optimistic at the time. However, recent developments have shown that the stablecoin market already has some serious momentum, and the growth is likely to continue.

Citigroup’s entry follows on the heels of JPMorgan Chase, which recently confirmed its plans to be involved in both deposit coins and stablecoins. This is especially interesting, considering how JPMorgan CEO Jamie Dimon has long been a vocal critic of cryptos. However, even Dimon appears to be softening his stance. He has so far acknowledged during a recent earnings call that “our competitors are trying to figure out a way to get into payment systems and rewards programs, and we have to be cognizant of that.” JPMorgan is reportedly preparing to launch a blockchain-based deposit token called JPMD, which will operate on the Base network. While this isn’t a traditional stablecoin, it is still a massive step towards blockchain-based finance and is a clear indication that big banks are recognizing that the future is digital.

Overall, the recent push from major banks comes as regulatory conditions improve under the administration of U.S. President Donald Trump. One of the major legislative efforts driving this movement has been the GENIUS Act, which is geared towards establishing clarity for USD-backed stablecoins. As the world moves further towards speed and transparency in payments, stablecoins are expected to play more and more of a role in the revolution.