Citigroup joins other Wall Street giants in stablecoin plans, aligning with U.S. efforts to institutionalize dollar-backed digital assets.
Citigroup may soon launch its own stablecoin to facilitate digital payments, CEO Jane Fraser told analysts during a post-earnings call on Tuesday.
Fraser noted that while Citi stablecoin issuance is still under discussion, the bank is particularly focusing on the “tokenized deposit space.”
As per a recent report by Reuters, Citigroup is also exploring stablecoin reserve management and offering custody solutions for crypto assets.
Citigroup’s interest comes as JPMorgan CEO Jamie Dimon, once a crypto skeptic, recently confirmed during a post-earnings call that the bank plans to engage with deposit coins and stablecoins.
JPMorgan is preparing to launch a stablecoin-like blockchain asset, JPMD, on the Base network.
Stablecoin Market Sees Institutional Momentum
Standard Chartered’s Global Head of Digital Assets Research Geoffrey Kendrick recently stated that 90% of his recent discussions with clients and policymakers were centered on stablecoins.
According to a report released by The Information, the Depository Trust & Clearing Corporation (DTCC) is also developing a stablecoin. The financial player sees stablecoins as a potential tool to streamline the settlement process for traditional assets, potentially reducing costs and increasing speed.
Wall Street’s rising interest in stablecoins aligns with growing efforts in the U.S. to institutionalize dollar-backed digital assets.
Bank of America is also preparing a dollar-pegged stablecoin, pending clarity under the GENIUS Act. BofA CEO Brian Moynihan stated that the bank would proceed once Congress finalizes regulations.
Regulatory Environment
Meanwhile, the United States President Donald Trump has expressed strong support for advancing the GENIUS Act, which passed the Senate last month and awaits a House vote. Trump confirmed he met with lawmakers, ensuring support for the bill in an upcoming vote.
Last month, the Treasury Secretary Scott Bessent said that stablecoins can lower government borrowing costs and reduce national debt.
The total stablecoin market currently holds a capitalization of $261 billion. Tether’s USDT leads at $160 billion, capturing over 62% of market share, followed by USDC at $62 billion.
Kendrick predicts the stablecoin market could expand to $750 billion by the end of 2026 amid expectations of top crypto coins adoption.
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