- Citigroup CEO Jane Fraser confirmed the bank is investigating the issuance of its own stablecoin and expanding into tokenized deposits.
- Citi Institute, Citigroup’s think tank, projects stablecoin supply could reach $1.6 trillion in a base case and up to $3.7 trillion in a bullish scenario by 2030.
- Despite the U.S. Senate passing the GENIUS Act, a fresh House gridlock has paused momentum.
Citigroup is exploring the issuance of its own stablecoin to support digital payments, according to Reuters , citing the bank’s CEO, Jane Fraser.
This development follows a forecast by Citi’s in-house think tank, Citi Institute, which projected that stablecoin issuance could reach $3.7 trillion by the end of the decade.
Citi Explores Stablecoin
On Tuesday, July 15, Fraser informed analysts that the bank is evaluating the issuance of a Citi stablecoin, while also focusing on reserve management.
“We are looking at the issuance of a Citi stablecoin, but probably most importantly is the tokenized deposit space, where we’re very active,” she said.
“This is a good opportunity for us,” she added.
Fraser also noted that the bank is exploring crypto custody solutions for digital assets.
Additionally, Citigroup announced plans to repurchase at least $4 billion worth of stock following a better-than-expected second quarter earnings report.
Citi Is Bullish on Stablecoins
In April, Citi Institute released a report estimating that the total supply of stablecoins could grow to $3.7 trillion by 2030 under a bullish scenario. The estimate assumes minimal regulatory and technical hurdles, combined with supportive legislative developments.
Even in a more conservative base case, the think tank projected stablecoin growth could still reach $1.6 trillion.
“The total outstanding supply of stablecoins could grow to $1.6 trillion by 2030 in our base case and to $3.7 trillion in our bull case,” the report stated.
However, Citi warned that if challenges in adoption and integration persist, the actual figure could be significantly lower—possibly half of the base case estimate.
Traditional Finance Embracing Stablecoins
Citi’s interest in stablecoins marks a broader trend of traditional financial institutions entering a space once dominated by crypto-native firms such as Circle and Tether.
Despite longtime skepticism, JPMorgan Chase is also engaging with the technology. CEO Jamie Dimon recently acknowledged ongoing work with JPMorgan’s internal stablecoin and broader stablecoin initiatives.
“I think they’re real,” Dimon said during a recent earnings call , “but I don’t know why you’d want to use a stablecoin instead of just payment.”
JPMorgan is currently piloting its stablecoin, JPMD, with institutional clients.
Navigating Regulatory Uncertainty
A major milestone in U.S. stablecoin regulation occurred with the Senate’s approval of the GENIUS Act on June 17, 2025.
However, progress stalled on Tuesday, July 15, when the House of Representatives blocked procedural votes that would have advanced the GENIUS Act, the STABLE Act, and the broader Digital Asset Market Clarity Act.
Lawmakers cited disagreement over whether to consider the bills individually or as a bundled package.
The legislative delay shook digital asset markets, stocks of companies like Circle and Coinbase each dropped approximately 4–5% following the news.
Nonetheless, despite the regulatory headwinds, major banks and tech companies continue to advance their stablecoin-related initiatives.
