Citigroup weighs issuing stablecoin to expand digital payment capabilities: Reuters
Powered by ChatGPTCitigroup, the third-largest banking institution in the U.S., is exploring an option to issue its own stablecoin to expand digital payment capabilities, Reuters reported citing CEO Jane Fraser.
Following an earnings call on Tuesday, Fraser reportedly informed analysts that Citigroup is exploring a "Citi stablecoin." However, the CEO said Citi is placing more value on its opportunity in tokenized deposits.
Citigroup's crypto endeavor could come in the form of managing reserves for stablecoins or providing custody services for cryptocurrencies, Fraser said.
Earlier this week, JPMorgan Chase CEO and longtime crypto skeptic Jamie Dimon said his bank is going to be involved in deposit coins and stablecoins. This confirmation follows last month's news that said JPMorgan Chase is planning to launch a stablecoin-like blockchain asset called JPMD on the Base network.
The Depository Trust & Clearing Corporation (DTCC) was also reported to be developing a stablecoin last month.
Wall Street's surging interest in stablecoins is in line with ongoing efforts in the U.S. to institutionalize and promote U.S. dollar-backed stablecoins, under President Donald Trump's strong push.
The GENIUS Act, which aims to establish legal fundamentals for USD stablecoins, passed the Senate last month and is currently in the House of Representatives. While House lawmakers voted against advancing the bill on Tuesday, Trump said he met with key members of Congress and confirmed that they will vote in favor in the upcoming vote later today.
Standard Chartered's Global Head of Digital Assets Research Geoffrey Kendrick said Tuesday that 90% of his recent conversations with clients and policymakers in Washington, New York, and Boston were about stablecoins.
Kendrick added that once stablecoins reach a $750 billion market capitalization, they will start to impact traditional finance assets and policies. Stablecoins hold a total market cap of $257 billion, according to DefiLlama, and Kendrick predicts them to hit $750 billion by the end of 2026.