Citigroup is examining the potential of stablecoins while calling for clearer regulations and defined use cases, according to a senior executive.

Stablecoins are digital tokens backed by fiat currencies or reserve assets and are gaining attention due to the rising demand for instant payments.

During an earning call on July 15, Citigroup CEO Jane Fraser said that stablecoins and digital assets could modernize the bank’s operations and attract new clients.

Her remarks came ahead of expected US legislation on stablecoins that may facilitate broader adoption of digital assets.

Shahmir Khaliq, Citigroup’s head of services, noted the global nature of stablecoins and mentioned regulatory developments like Hong Kong’s stablecoin ordinance, effective August 1.

He indicated that while companies are interested in stablecoin technology, they require clear accounting rules and better regulatory guidance.

Khaliq outlined possible uses for stablecoins, including reserve management, currency conversion, and hedging crypto assets.

He acknowledged that the ecosystem is still developing and that adoption will depend on factors such as cost and accessibility.

Citigroup is also using blockchain technology through its Citi Token Services, launched last year, which operates in markets including the US, the UK, Singapore, and Hong Kong.

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