Citigroup Explores Stablecoin Issuance in Digital Finance Push

Citigroup, one of the world's leading financial institutions, has announced its exploration into the issuance of a stablecoin. During the bank's second-quarter 2025 earnings call, CEO Jane Fraser confirmed that Citigroup is evaluating the launch of its own stablecoin as part of a broader digital finance strategy. Fraser emphasized that digital assets represent the next stage in the digitization of payments, financing, and liquidity, echoing the shift brought on by fintech innovations.

Fraser outlined four key areas that Citigroup is pursuing in its digital finance strategy. These include stablecoin reserve management, on- and off-ramps between fiat and digital currencies, custodial services for crypto, and tokenized deposits. Among these, tokenized deposits are currently the most active area of focus for the bank. Fraser confirmed that while the bank is looking at the issuance of a Citi stablecoin, tokenized deposits remain the more immediate priority.

The bank's digital finance strategy is aimed at modernizing internal operations, unlocking new revenue streams, and acquiring clients. Fraser highlighted that Citi's approach is centered on meeting client demand for seamless, cross-border, multi-bank, always-on solutions with built-in compliance, reporting, and accounting features. This strategy aligns with the bank's goal of providing innovative financial solutions that cater to the evolving needs of its clients in the digital age.

Citigroup's exploration into stablecoins and tokenized deposits is part of a broader trend in the financial industry towards digital assets. As the world continues to digitize, financial institutions are increasingly looking for ways to leverage digital technologies to enhance their services and stay competitive. Citigroup's move into this space is a testament to its commitment to innovation and its recognition of the potential of digital assets in the future of finance.