Citigroup Expands Digital Asset Strategy After New US Law

Citigroup is moving deeper into digital assets, exploring stablecoin custody and payment services following a new U.S. law that strengthens the regulatory foundation for crypto payments. The legislation requires stablecoin issuers to fully back their tokens with safe assets such as U.S. Treasuries or cash, creating fresh opportunities for custody banks like Citi to safeguard and manage these reserves.

The bank already allows users to convert stablecoins into U.S. dollars for instant payments, transfer them between accounts, and use tokenized dollars on international blockchain rails. Building on this, Citi is now weighing more ambitious moves, including the launch of crypto ETFs and the potential issuance of its own stablecoin.

Other major financial players such as Fiserv and Bank of America are also examining how the new legal framework could expand their crypto offerings, signaling wider institutional adoption of stablecoin-based payments.

Biswarup Chatterjee, Citi’s global head of partnerships and innovation, said the bank is undergoing a major restructuring as it experiments with new digital payment models. He emphasized stablecoin’s potential to drive innovation across global payment networks, underscoring the bank’s interest in being at the forefront of this evolution.

Citi’s research earlier this year estimated that stablecoins could grow into a $3.7 trillion market by 2030, highlighting the sector’s vast potential for reshaping the future of money movement.

Bank of Americablockchain paymentsCitiCitigroupcrypto ETFscrypto paymentsdigital assetsFiservstablecointokenized dollars