Citigroup Plans Stablecoin Issuance Amid Growing Bank Interest

Citigroup, one of the largest banks in the United States, has announced its plans to potentially issue a stablecoin, as revealed by CEO Jane Fraser during a post-earnings conference call. This initiative comes as the bank focuses on both the stablecoin project and the growing tokenized deposit sector, with Fraser stating that this presents a good opportunity for the bank. Citigroup is also exploring solutions for reserve management related to stablecoins and providing custody services for cryptocurrency assets.

Fraser credited the Trump administration’s Genius Act, a bill that lays out clear rules for stablecoin issuers, for giving banks the confidence to step into the space. “We really welcome the administration’s willingness to allow banks to participate in the digital asset space more easily,” Fraser said. The Federal Reserve has also rolled back two previous rules that required banks to get pre-approval before doing anything with crypto. That’s made it easier for banks like Citi to innovate without unnecessary delays.

Citi isn’t alone in its exploration of stablecoins. Major banks such as JPMorgan, Bank of America, and Wells Fargo are also looking into stablecoin projects. This trend indicates a growing interest among traditional financial institutions in adopting blockchain-based systems. In addition, France’s Société Générale has already launched its own dollar-pegged stablecoin, which will go live on Ethereum and Solana in July 2025.

The stablecoin market is experiencing significant growth, with a circulating supply of $11 billion and yield-bearing stablecoins accounting for 4.5% of the total. Over 109 million wallets worldwide now use stablecoins. The high-profile listing of Circle, a leading stablecoin issuer, earlier this year shows the sector’s appeal to both retail and institutional investors.

With Citi entering the stablecoin arena, blockchain and traditional finance are beginning to merge in a way that could reshape global banking. The question remains whether other banks will follow Citi’s lead. If this momentum continues, stablecoins may soon become a core part of everyday finance. Citigroup’s move into the stablecoin space is part of a broader trend among major financial institutions exploring digital assets and blockchain technology. The bank’s focus on reserve management and custody services for cryptocurrency assets indicates a strategic approach to integrating digital currencies into its existing financial services. As regulatory frameworks evolve, Citigroup’s stablecoin initiative could position the bank as a leader in the digital payments landscape, potentially driving innovation and competition in the financial sector.