Is Citigroup eyeing stablecoin issuance? Here’s what we know

Citigroup claims to be exploring stablecoin adoption amidst accelerated regulations in the United States and Hong Kong to accommodate. How far are they willing to dive?

Major financial institutions are now seeking opportunities to benefit from the current stablecoin wave that’s been sweeping the globe. Companies in Hong Kong and the United States have expressed interest in issuing their own stablecoins pegged to local currencies.

The global banking firm Citigroup is no exception. In a recent earnings call, CEO Jane Fraser said to stakeholders that the bank is currently aiming to delve deeper into stablecoins and digital assets in order to fulfill clients’ needs. In addition, the bank also hopes to attract new clients and unlock new revenue streams through stablecoins.

These comments are reaffirmed by New York-based head of services at Citigroup, Shahmir Khaliq in an interview with South China Morning Post. The executive called stablecoins a “global phenomenon,” especially with recent developments in the United States and Hong Kong’s own Stablecoin Ordinance bill that is scheduled to come into effect on August 1.

“We welcome regulators providing us guidance and insight on the stablecoin landscape, allowing us to continue developing new services that help our clients run their businesses every day,” said Khaliq.