Citigroup Explores Launching Stablecoin as Banks Embrace Crypto Shift

Citigroup is evaluating the potential launch of its own U.S. dollar-backed stablecoin, signaling a growing shift in sentiment among traditional financial institutions toward digital assets.

During the bank’s latest earnings call, CEO Jane Fraser told analysts that the firm is actively researching a product tentatively called the “Citi stablecoin,” according to a Reuters report.

While Fraser confirmed the exploration, she emphasized that Citigroup’s primary interest lies in the broader field of tokenized deposits. This approach involves converting customer deposits into digital tokens that can be instantly transferred across blockchain networks, offering a more efficient and programmable alternative to traditional payment rails.

In addition to its own stablecoin initiative, Citigroup is also considering offering reserve management services for third-party stablecoins and expanding into cryptocurrency custody solutions. These services would allow the bank to safeguard digital assets on behalf of institutional clients, enhancing trust and security in the evolving crypto financial system.

Big banks warm to digital assets

Citigroup’s move is part of a broader trend across global finance. Just a few years ago, major banks widely criticized cryptocurrencies for their volatility, lack of regulation, and perceived criminal utility. JPMorgan CEO Jamie Dimon famously dismissed Bitcoin as a “fraud” in 2017, only for his firm to later launch its own JPM Coin for settlement.

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Similarly, institutions like BlackRock, Goldman Sachs, and BNY have transitioned from skeptics to active participants in the crypto ecosystem. According to a 2024 PwC report, over 50% of top-tier banks now invest in blockchain infrastructure or offer crypto-related services. This growing institutional embrace reflects both shifting regulatory clarity and increasing demand from corporate and high-net-worth clients seeking blockchain-based financial tools.

As regulatory frameworks evolve and the demand for on-chain financial instruments rises, more legacy banks are expected to follow Citigroup’s lead into stablecoins and tokenized payments.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.