Citigroup Considers Launching Its Own Stablecoin to Support Digital Payments

Highlights:

• Citigroup explores launching a stablecoin, focusing on tokenized deposits and digital asset infrastructure.
• JPMorgan and Citi join big banks planning shared stablecoin amid rising fintech competition.
• The GENIUS Act, now backed by Trump, aims to regulate USD stablecoins across the banking sector. 

Citigroup, the third-largest banking institution in the United States, is exploring the possibility of launching its own stablecoin, according to CEO Jane Fraser, who spoke during the bank’s Q2 earnings call on July 15. This initiative is part of the financial giant’s broader strategy to grow its presence in the evolving world of tokenized finance.

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*CITI CEO JANE FRASER: CITIGROUP IS EXPLORING ISSUING A STABLECOIN$C pic.twitter.com/790Ob0UZ3Y

— Investing.com (@Investingcom) July 15, 2025

Citigroup Considers Stablecoin as Part of Bigger Digital Asset Push

Fraser reportedly told analysts that Citigroup is considering the idea of launching a “Citi stablecoin.” However, she emphasized that the bank sees greater potential in the tokenized deposit space. She also noted that Citigroup’s involvement in crypto could include managing reserves for stablecoins or offering custody services for digital assets.

Dimon said:

“We’re going to be involved in both JPMorgan deposit coin and stablecoins to understand it, to be good at it. I think they’re real, but I don’t know why you’d want to [use a] stablecoin as opposed to just payment.”

Citigroup isn’t just entering the stablecoin race to stay competitive. CEO Fraser explained that the real focus is on improving the bank’s core systems to bring practical benefits to clients. She noted that Citi plans to upgrade its infrastructure using stablecoin and digital asset innovations. The goal is to improve efficiency, transparency, and interoperability while ensuring user safety and reliability. “Digital assets are the next evolution in the broader digitization of payments, financing, and liquidity,” she said. “Ultimately, what we care about is what our clients want and how do we meet that need.”

Big Banks Push for Joint Stablecoin

JPMorgan Chase, the largest U.S. bank with $3.6 trillion in assets, is preparing to step into the stablecoin market. During a recent earnings call on Tuesday, CEO Jamie Dimon said the bank’s interest in stablecoins and its own deposit coin is partly influenced by the rising competition from fintech firms mimicking traditional banking features. Dimon noted that the bank aims to explore and understand stablecoins better by being directly involved. 

His comments follow recent reports about the bank developing a blockchain-based asset called JPMD. The token, expected to launch on the Base network, will function similarly to a stablecoin. Around the same time, the Depository Trust & Clearing Corporation (DTCC) was also reported to be working on developing its own stablecoin solution.

GENIUS Act Gains Trump’s Support

In May 2025, reports from The Wall Street Journal revealed that several major banks were exploring the idea of launching a shared stablecoin. Reports said the group included JPMorgan, Citigroup, Bank of America, and Wells Fargo, and President Donald Trump strongly backs this push. The GENIUS Act, designed to set legal rules for USD stablecoins, passed the Senate last month. It is now in the House of Representatives. Although lawmakers rejected it on Tuesday, Trump said he met with key leaders and expects it to pass in today’s vote.

Exclusive: Major U.S. banks are exploring a joint stablecoin to compete with the crypto industry https://t.co/PaPmSdEOjh

— The Wall Street Journal (@WSJ) May 23, 2025

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