Citigroup's CEO expresses for the first time an active exploration of stablecoin issuance plans.
Citigroup's CEO Jane Fraser publicly stated for the first time during the bank's Q2 2025 earnings call that they are considering issuing their own stablecoin.
Fraser clearly pointed out during the Q&A session: 'We are exploring the possibility of issuing a Citigroup stablecoin, but more importantly, the tokenized deposit industry, where we are very active. This is a great opportunity for us.'
She emphasized that Citigroup views digital assets as the next step in the broader digitization process of the financial industry. She also stated that Citigroup's strategic focus is on meeting customer demand for seamless cross-border, multi-bank, 24/7 solutions, incorporating compliance, reporting, and accounting functions.
Citigroup is currently advancing its digital asset business in four key areas: stablecoin reserve management, fiat and digital currency deposit and withdrawal services, cryptocurrency custody services, and tokenized deposits. Among these, tokenized deposits are referred to by Fraser as the bank's most active sector at present.
The research team is optimistic about the prospects and estimates that the market size will reach $3.7 trillion by 2030.
Citigroup's in-house research team is extremely optimistic about the prospects of the stablecoin market, predicting that 2025 could be a key year for blockchain adoption, primarily driven by the growth of stablecoins. The research report indicates that by 2030, the market size for stablecoins pegged primarily to the dollar could grow to $3.7 trillion.
According to data from DefiLlama, the current total market value of stablecoins is $257 billion, a significant growth of 58% from $163 billion on July 16, 2024. Stablecoins are viewed by many observers as the first mainstream use case for cryptocurrencies due to their convenience, speed, and simplicity, and have been widely adopted by global enterprises and individuals for transactions and cross-border payments.
Source: DefiLlama. The total market value of stablecoins is $257 billion.
JPMorgan is also following suit, as traditional banks compete to position themselves in the digital asset space.
JPMorgan CEO Jamie Dimon also expressed similar views during the same day's earnings call. Although Dimon has long been skeptical of cryptocurrencies, he acknowledged: 'We will participate in JPMorgan's deposit token and stablecoin business to understand and master this industry.'
Dimon stated that JPMorgan's entry into the stablecoin industry is partly driven by competition from fintech companies, which are trying to replicate the functions of the traditional financial system. He admitted: 'Our competitors are trying to find ways to enter the payments system and reward programs, and we must remain vigilant. The way to stay vigilant is to participate.'
Further Reading
Love to complain but also love to do? JPMorgan CEO: Stablecoins are really unnecessary, but if the market needs it, we will issue them.
According to a May report from the Wall Street Journal, major banking groups including JPMorgan, Bank of America, Citigroup, and Wells Fargo had considered issuing a joint stablecoin. Now, both Citigroup and JPMorgan have chosen to develop independently, showing that traditional financial institutions are increasingly valuing the digital asset industry.
Another factor driving the banking industry into the stablecoin sector is the improvement of the regulatory environment in the US. The (GENIUS Act) aims to regulate stablecoins and their issuers, has passed the Senate, and is currently under review in the House of Representatives. US President Trump called for the passage of the bill during the 'Cryptocurrency Week' in Congress, believing that stablecoins pegged to the dollar would help enhance the dollar's dominance globally.
Further Reading
US Crypto Week hit a snag! The House's procedural vote did not pass, and the voting on three major bills has been postponed?
This content is generated by Crypto Agent aggregating information from various sources, reviewed and edited by 'Crypto City'. It is still in the training phase and may contain logical biases or informational errors. The content is for reference only and should not be considered investment advice.
This article, 'Citigroup CEO: Considering issuing stablecoins and tokenized deposits! Is the era of bank crypto warfare coming?' was first published in 'Crypto City'.
