TLDR
Citigroup is considering a stablecoin and tokenized deposits, CEO Jane Fraser confirmed.
Citigroup joins JPMorgan and DTCC in exploring blockchain-based payments.
U.S. stablecoin market cap stands at $257B; forecasted to hit $750B by 2026.
Trump-backed GENIUS Act could accelerate U.S. stablecoin regulation and adoption.
Citigroup may soon join the list of major banks moving into the stablecoin space. The announcement came during the bank’s second-quarter earnings call, where CEO Jane Fraser said the company is actively exploring digital assets, including issuing its own stablecoin.
This move follows similar steps by other financial institutions, reflecting a broader trend across Wall Street. With policymakers and regulators focusing on stablecoins, major banks are aligning with emerging digital payment systems.
Stablecoin Consideration Part of Broader Digital Asset Strategy
Citigroup, the third-largest bank in the U.S. by assets, is reviewing the idea of launching a “Citi stablecoin.” Speaking to analysts on Tuesday, Fraser said,
“We are looking at the issuance of a Citi stablecoin, but probably most importantly is the tokenized deposit space, where we’re very active. This is a good opportunity for us.”
Alongside a potential stablecoin, the bank is also evaluating tokenized deposit solutions as part of its digital asset plans. Tokenized deposits represent liabilities recorded on blockchain systems, offering a faster and programmable form of bank money.
The bank is not limiting itself to issuance. Fraser added that Citigroup is studying opportunities in stablecoin reserve management and crypto custody services. These areas could help the bank expand its role in digital finance infrastructure.
Citigroup Follows Trend Among U.S. Banking Giants
Citigroup’s exploration comes as other large banks are stepping up their activity around blockchain-based payments. JPMorgan Chase, traditionally skeptical of cryptocurrencies, recently confirmed its involvement in stablecoin development. The firm is preparing to launch JPMD, a deposit token on the Base network.
Last month, the Depository Trust & Clearing Corporation (DTCC) was also reported to be developing a stablecoin-like product. These initiatives signal that leading financial firms are beginning to explore blockchain-based alternatives for payment and settlement.
Jane Fraser’s comments also follow a broader market reaction. Citigroup’s shares reached their highest level since the 2008 financial crisis after posting second-quarter results that surpassed analyst forecasts. The company announced a $4 billion stock buyback plan alongside its digital asset update.
Policy Developments Push Wall Street Toward Stablecoins
Interest in stablecoins is also growing in Washington. A bill known as the GENIUS Act, which aims to provide clear rules for U.S. dollar stablecoins, passed the Senate last month. Although the House initially voted against advancing the bill, President Donald Trump later confirmed a new vote is expected soon.
Trump has strongly supported stablecoin development, urging U.S. lawmakers to advance digital dollar initiatives. His meetings with House representatives this week included discussions about building a framework for U.S.-backed digital assets.
Geoffrey Kendrick, Head of Digital Assets Research at Standard Chartered, said 90% of his recent meetings with clients and policymakers in cities like Washington and New York focused on stablecoins. Kendrick believes the market cap of stablecoins could rise to $750 billion by the end of 2026. According to DefiLlama, the current stablecoin market cap stands at $257 billion.
Wall Street Prepares for a Future in Digital Payments
The attention surrounding stablecoins is not isolated. As blockchain payment systems mature, banks are positioning themselves to support and manage digital dollar flows. Custody services, compliance support, and reserve management are all being reviewed by top institutions.
Citigroup’s active participation in tokenized deposits and exploration of a native stablecoin reflects this larger trend. While no firm launch date has been provided, the comments made by Fraser confirm that the bank sees strategic potential in blockchain-based money solutions.
The digital asset landscape is shifting, and banks like Citigroup are preparing to play a direct role. As regulatory clarity improves and demand for faster, programmable payment solutions grows, stablecoin issuance and tokenized banking may become core parts of the financial system.
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