Citigroup Inc. is positioning itself as one of the first major traditional banks to expand deeper into the digital asset space by exploring the launch of its own stablecoin. CEO Jane Fraser introduced the initiative during the company’s latest earnings call, highlighting a broader focus on tokenized deposits and cryptoasset custody solutions.
As per the reports, “We are looking at the issuance of a Citi stablecoin,” Fraser told analysts. She stated that the bank’s strategy includes active research and development in blockchain-based financial services.
This move comes as Congress advances significant crypto regulation and U.S. regulators ease earlier restrictions that limited traditional banks’ roles in digital assets. Fraser expressed support for this regulatory shift, pointing specifically to the GENIUS Act, a legislative proposal that offers a clear framework for stablecoin issuance.
“We really welcome the administration’s willingness to allow banks to participate in the digital asset space more easily,” Fraser said. “Up until now, it has been hard for us to participate in a level playing field.”
Citigroup currently uses a deposit token model in its proprietary Citi Token Services network and is weighing broader strategies for external implementation. This could include collaborations with third-party platforms and fintech innovators.
“Nothing is off the table right now,” said Biswarup Chatterjee, Citi Services’ Global Head of Partnerships and Innovation. “It’s the topic du jour right now, particularly among senior management.”
The move aligns with the broader industry trend as banking giants like JPMorgan Chase test their own digital tokens, such as the JPMD token. Meanwhile, payment giants like Visa and Mastercard are building tools to assist financial institutions in issuing dollar-backed tokens.
Some industry players, like Circle Internet Group, have also advocated for stablecoins, hailing them as safer than traditional bank money as they are backed by fully reserved short-term assets. However, many banks favor tokenized deposits, which maintain regulatory alignment and avoid drawing funds out of the banking system.
Part of Citigroup’s motivation is to preempt potential deposit flight if customers shift their funds into stablecoin ecosystems. The bank’s interest in this space also coincides with a strong financial performance.
Citigroup stock surged to its highest level since 2008 after announcing plans to repurchase at least $4 billion in shares during the third quarter. Citigroup has recently published its second-quarter 2025 results and key metrics.
Where Fraser said, “We reported another very good quarter and continue to demonstrate that our strong results are sustainable through different environments. ”With revenue up 8%, Services continues to show why this high-return business is our crown jewel. She added.
Also Read: Jamie Dimon Confirms JPMorgan Will Introduce Custom Stablecoin
