In a notable move that could reshape how major banks engage with digital assets, Citigroup is exploring the launch of its own stablecoin, aiming to strengthen its position in the evolving landscape of digital payments.
The announcement came directly from CEO Jane Fraser during the company’s Q2 earnings call on Tuesday.
A Strategic Shift Toward Digital Finance
Speaking to analysts, Fraser said,
“We are looking at the issuance of a Citi stablecoin, but probably most importantly is the tokenized deposit space, where we’re very active. This is a good opportunity for us.”
This signals Citigroup’s serious intent to compete in the fintech space alongside crypto-native firms and forward-thinking banks like Standard Chartered. The focus is not only on launching a Citi-branded stablecoin but also on exploring tokenized deposits, a core pillar of future digital banking infrastructure.
Custody and Reserve Management in Focus
Citigroup is not stopping at just issuing digital currency. According to Fraser, the bank is also working on reserve management strategies for stablecoins — ensuring that any digital asset it issues would be backed and regulated in line with global financial standards.
Furthermore, Citi is exploring crypto custody solutions, aimed at offering secure storage and compliance-first services for institutional clients looking to hold or interact with digital assets.
Earnings Boost Confidence in Digital Ambitions
Coinciding with the digital finance announcement, Citigroup’s stock briefly touched its highest level since the 2008 financial crisis after beating Wall Street’s Q2 expectations. In addition, the bank revealed plans to buy back at least $4 billion worth of stock, reinforcing investor confidence and giving it strong capital backing to explore innovative financial products.
This financial momentum strengthens Citi’s ability to push deeper into blockchain and tokenization strategies without sacrificing stability.
Joining the Global Race in Stablecoins
With U.S. regulators providing clearer frameworks for stablecoins and tokenized assets, Citigroup’s move comes at an opportune moment. The bank joins a growing list of global financial giants actively working on digital currency solutions to serve cross-border payments, institutional settlements, and real-time treasury operations.
If realized, a Citi stablecoin would be a significant development in legitimizing and scaling enterprise-grade digital payments within the banking sector.