Citigroup, one of Wall Street’s biggest banks, is taking a major step into the world of digital finance. CEO Jane Fraser has confirmed that the bank is “looking at the issuance of a Citi stablecoin” – a move that could reshape how traditional banks use blockchain.
As crypto regulations ease and stablecoin demand rises, Citi’s plans show how fast big banks are shifting toward blockchain-based systems.
Fraser shared that Citi is exploring not just stablecoins, but also tokenized deposits and crypto custody services. This signals a deeper push by the bank into the digital asset space.
Citi isn’t alone. According to The Wall Street Journal, JPMorgan, Bank of America, and Wells Fargo are also looking into stablecoin projects. The trend is clear: more major banks are gearing up to join the stablecoin race.
In Europe, France’s Société Générale has already launched its own dollar-pegged stablecoin, USD CoinVertible, which will go live on Ethereum and Solana in July 2025.
Fraser credited the Trump administration’s Genius Act, a bill that lays out clear rules for stablecoin issuers, for giving banks the confidence to step into the space.
“We really welcome the administration’s willingness to allow banks to participate in the digital asset space more easily,” Fraser said.
The Federal Reserve has also rolled back two previous rules that required banks to get pre-approval before doing anything with crypto. That’s made it easier for banks like Citi to innovate without unnecessary delays.
The stablecoin market is growing, with a circulating supply of $11 billion and yield-bearing stablecoins accounting for 4.5% of the total, according to recent data. Over 109 million wallets worldwide now use stablecoins, as reported by FinanceMagnates.
The high-profile listing of Circle, a leading stablecoin issuer, earlier this year shows the sector’s appeal to both retail and institutional investors.
With Citi entering the stablecoin arena, blockchain and traditional finance are beginning to merge in a way that could reshape global banking.
The question is, Citi Eyes Stablecoin Launch After Trump’s Crypto Policy Shiftwill other banks follow Citi’s lead? If this momentum continues, stablecoins may soon become a core part of everyday finance.
Major banks like Citi, JPMorgan, Bank of America, and Wells Fargo are moving into crypto due to easing regulations, such as the Trump administration’s Genius Act providing clear stablecoin rules, and the Federal Reserve rolling back pre-approval requirements for crypto activities.
The “Genius Act” is a bill that establishes clear rules for stablecoin issuers. Citigroup’s CEO Jane Fraser credited this legislation for giving banks the confidence and regulatory clarity needed to participate more easily in the digital asset space.
The stablecoin market is experiencing significant growth, with a circulating supply of $11 billion. Yield-bearing stablecoins account for 4.5% of the total, and over 109 million wallets worldwide actively use stablecoins.
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