Citigroup Weighs Launch of Proprietary Stablecoin Amid Broader Digital Asset Push
Citigroup is actively exploring the launch of a proprietary stablecoin, according to CEO Jane Fraser, as part of the bank’s expanding focus on tokenized finance and blockchain-based infrastructure.
“We are looking at the issuance of a Citi stablecoin,” Fraser said during the bank’s Q2 2025 earnings call, highlighting tokenized deposits as Citi’s most advanced initiative within the digital asset ecosystem.
Stablecoins — digital tokens pegged to fiat currencies like the U.S. dollar — are increasingly being embraced by traditional finance for their potential to enable faster, more efficient payments and settlement systems. Citi’s own projections suggest the stablecoin market could reach $3.7 trillion by 2030.
Fraser said the bank sees strong demand for tokenized solutions from institutional clients, particularly for real-time cross-border transactions, custody, and reserve management. “Digital assets are a logical next step in financial innovation,” she noted, echoing broader industry sentiment.
Citi’s four-pronged digital asset strategy includes:
- Stablecoin reserve services
- Fiat–crypto on/off ramps
- Digital asset custody
- Tokenized deposits, which are furthest along in development
Her comments come as lawmakers debate several key pieces of crypto legislation in Washington, including the bipartisan FIT21 framework and the potential regulatory impact of the GENIUS Act. Fraser said regulatory clarity could further accelerate stablecoin adoption among banks and corporations.
Other Wall Street players are also advancing stablecoin strategies. JPMorgan, whose CEO Jamie Dimon has previously expressed skepticism about crypto, has seen rising demand for its own digital cash solutions like JPM Coin.
The stablecoin remarks were delivered alongside Citi’s robust second-quarter earnings. The bank reported net income of $4 billion ($1.96 per share), up from $3.2 billion ($1.52) in Q2 2024. Total revenue rose 8% to $21.7 billion, supported by growth across institutional services, personal banking, and wealth management.
As digital finance matures, Citigroup appears intent on playing a central role in bridging traditional banking with blockchain-powered innovation.
