Citigroup, the third-largest bank in the US, is preparing to make another move into the cryptocurrency space. According to a Reuters report, the bank's CEO, Jane Fraser, stated during its latest earnings call that they are evaluating the possibility of developing their own stablecoins and tokenized deposit solutions.
According to Fraser, a potential asset called the "Citi stablecoin" is central to the bank's cryptocurrency strategy. However, Fraser emphasized that the real opportunity lies in tokenized deposits.
However, Citigroup is not only considering issuing its own assets; it is also considering providing reserve management services for stablecoins and developing custody solutions for cryptocurrencies. This aims to become both an infrastructure provider and a custodian for digital assets.
JP Morgan has made a similar move
These developments indicate the growing interest in stablecoins not only from Citigroup but also from Wall Street in general. As we recently reported, Jamie Dimon, CEO of the renowned Wall Street bank JPMorgan Chase, made a similar statement, stating that the bank, which had long distanced itself from cryptocurrencies, would now participate in stablecoin and deposit token projects. It was even reported that JPMorgan plans to launch a digital asset called "JPMD" on the Base blockchain.
Another important institution joining the stablecoin race is the Depository Trust & Clearing Corporation (DTCC), the leading US financial clearing and settlement agency. Last month, it was revealed that this institution is also working on its own stablecoin project.
This momentum on Wall Street parallels political pressures in the US to regulate and institutionalize stablecoins. Former President Donald Trump has openly expressed his support for stablecoins and continues to rally support by meeting with Republican members of Congress. The GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins), which passed the Senate last month, is currently on the House floor. Although the initial vote failed to progress, it is expected to be resubmitted to a vote in the coming hours thanks to pressure from Trump.
Geoffrey Kendrick, Head of Digital Assets Research at Standard Chartered, stated that 90% of his recent discussions in Washington, New York, and Boston have been about stablecoins. According to Kendrick, when the stablecoin market reaches $750 billion by the end of 2026, these assets will begin to directly impact the traditional financial system. Currently, the total market capitalization of stablecoins is $257 billion.
