Citigroup’s CEO, Jane Fraser, told analysts the bank is weighing issuing its own stablecoin and focusing on tokenised deposits.
The plan aims to boost digital payment options and meet growing customer demand. Citigroup also plans to manage reserves for stablecoins and offer custody services for crypto assets.
Plans for Tokenised Deposits and Reserves
Fraser said that issuing a Citi stablecoin is under review. She added that the bank is active in the tokenised deposit space. This area lets clients hold digital versions of their bank funds on a blockchain.
Citigroup is also looking at ways to handle the reserves that back stablecoins. Proper reserve management ensures each token is fully supported by real dollars.
The bank is considering incorporating safe custody as part of its services. As more businesses seek to acquire cryptocurrency, a reliable custody service can enhance trust.
Citigroup aims to create a system whereby clients are able to store crypto in fortified vaults. This action may position the bank as the leading custody service provider for large institutional and corporate clients.
Stock Reaction and Buyback Plans
The share price of Citigroup for a very short time hit numbers that had not been seen since 2008. This happened after the firm declared its earnings from the second quarter, and it has surpassed forecasts made by Wall Street.
The company also plans to buy back around $4 billion of its own shares. Investors were quite impressed and hence reacted positively to the news.
As payments move to always‑on models, stablecoins offer instant settlement. Traditional transfers can take days to clear. Stablecoins settle in seconds on a blockchain network.
Fraser said digital assets are the next step in the digitisation of payments, financing, and liquidity. She noted that Citigroup’s moves are driven by what clients want.
Also Read: Hong Kong to Start Issuing Stablecoin Licenses in Coming Months Amid Surge in Applications
Four Focus Areas for Digital Assets
Citigroup’s roadmap covers reserve management, custody services, fiat‑to‑crypto ramps, and tokenised deposits. Together, these build a full suite for clients to move between dollars and tokens.
The bank hopes this mix will create a seamless user experience. It also aims to capture revenue from new digital payment services.
Industry Collaboration on Shared Stablecoin
Citigroup is not alone in exploring stablecoins. Earlier this year, reports said that JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo discussed a joint stablecoin project.
A shared token backed by multiple banks could speed up industry adoption of blockchain technology. Such a coin would combine trust in big banks with blockchain efficiency.
Circle, too, filed for an OCC charter to launch the First National Digital Currency Bank. This new institution would focus only on stablecoin infrastructure. If approved, it could become the first national trust bank dedicated to digital dollar tokens.
In Japan, Minna Bank announced a deal with Fireblocks, Solana Japan, and tech firm TIS. They will test stablecoins and Web3 wallets for everyday finance. This trial aims to see how digital tokens can power real‑world payments and banking services.
In Hong Kong, shares of crypto‑related firms rose as investors bet on new stablecoin rules. Guotai Junan International saw its stock jump 16 % by midday after winning approval to offer crypto trading. The city’s upcoming licensing framework has sparked a surge of interest among financial groups.
Global Banking Trends
Many large banks are racing to offer stablecoin services. They see an opportunity to merge their trust and scale with the speed of blockchain.
Regulators are also writing rules to bring digital assets into the mainstream. This wave of change could remake how banks handle payments and assets.
Citigroup’s exploration of its own stablecoin and tokenised deposits highlights a broader shift in finance. As demand for instant, blockchain‑based payments grows, banks and fintech firms are stepping up.