Citigroup Inc. is considering the issuance of its own stablecoin as part of its exploration of digital assets.

CEO Jane Fraser announced this during an earnings call on July 16, 2025. The bank is also evaluating tokenized deposits and custody services for cryptocurrencies.

Fraser’s remarks come as the US moves toward implementing regulatory frameworks for stablecoins. This includes the GENIUS Act, which aims to provide guidelines for issuers.

She expressed support for the easing of restrictions on banks’ participation in the digital asset space.

The proposed Citi stablecoin would integrate with the bank’s existing Citi Token Services network. This network currently employs a deposit token system.

Biswarup Chatterjee, Citi’s global head of partnerships and innovation, indicated that the bank is considering various options, including collaborations with other providers.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Banking’s digital assets approach follows historical pattern of defensive innovation

Citigroup’s potential stablecoin entry follows a longstanding pattern where banks initially resist technological disruption before strategically adopting it to protect market position.

This mirrors how major banks initially resisted electronic payments in the 1990s before eventually developing their own digital banking platforms to counter fintech competitors.

The current motivation reveals a similar defensive strategy, with the article explicitly noting banks want to protect against “deposit leakage” if consumers shift funds to stablecoin balances 1.

The timing is particularly strategic as the stablecoin market, currently valued at approximately $263 billion, is projected to reach $3.7 trillion by 2030, representing a massive potential shift in monetary assets 2.

2️⃣ Regulatory pendulum swing enables bank crypto participation

The current regulatory shift represents a dramatic reversal from the restrictive approach that previously prevented traditional banks from meaningfully participating in digital assets.

Specific regulatory changes include the OCC clarifying that national banks can engage in crypto custody and stablecoin activities, the FDIC easing notification requirements, and the Federal Reserve withdrawing supervisory letters that imposed prior approval requirements 1.