Citigroup Shares Slide to 75th in Trading Volume Amid Stablecoin Outflow Warnings and Banking Sector Risks

On August 25, 2025, Citigroup shares closed with a 0.27% decline, trading at a volume of $0.82 billion, a 56.92% drop from the previous day’s activity. The stock ranked 75th in trading volume across the market, reflecting subdued investor activity amid evolving macroeconomic dynamics.

Citigroup’s head of Future of Finance, Ronit Ghose, issued a cautionary note on stablecoin yields, warning that such products could trigger a $6.6 trillion outflow from traditional banks. The concern draws parallels to the 1980s money market fund surge, which saw a $32 billion net deposit withdrawal as institutions struggled to compete with non-bank alternatives. Ghose emphasized that stablecoins, by offering higher returns than conventional bank deposits, could erode the banking sector’s market share and introduce structural risks as adoption grows.

Regulatory scrutiny is intensifying as policymakers navigate the balance between innovation and stability. The proposed GENIUS Act, aimed at stabilizing the stablecoin sector, has faced criticism for perceived loopholes that could allow crypto exchanges to indirectly offer interest-bearing products. Banking groups argue such gaps threaten to destabilize the traditional financial system by enabling unfair competition. Meanwhile, the crypto industry has pushed back, advocating for stablecoins to foster innovation and maintain the U.S. dollar’s global dominance, rejecting what they view as protectionist regulatory measures.

Analysts highlight that stablecoin adoption introduces counterparty and liquidity risks, complicating central banks’ ability to manage monetary policy. As institutions like Citigroup warn of potential systemic vulnerabilities, the debate underscores the tension between preserving financial stability and embracing decentralized financial models. The outcome could reshape banking dynamics, influencing lending rates and credit availability for households and businesses.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to the present delivered a compound annual growth rate of 6.98%, with a maximum drawdown of 15.46% recorded during the backtest period. While the approach demonstrated steady growth, a significant decline in mid-2023 underscores the need for robust risk management in high-volume trading strategies.