Citigroup’s potential stablecoin launch marks a major step into blockchain-based finance, as the bank also intensifies its efforts around tokenised deposits and crypto custody services amid growing institutional interest in digital assets

Citigroup is evaluating the launch of its own stablecoin, reflecting a broader shift among major banks toward embracing digital asset innovation as regulatory conditions in the U.S. evolve.

During the company’s recent earnings call, CEO Jane Fraser revealed that Citigroup is actively exploring the issuance of a dollar-pegged stablecoin. The move would mark a significant step by one of the world’s largest financial institutions into the growing field of blockchain-based financial products. Alongside this, the bank is also deepening its focus on tokenised deposits and digital custody services for crypto assets.

Fraser welcomed the U.S. government’s more favourable approach to digital finance, highlighting the impact of the recently introduced Genius Act. The bill, proposed under the Trump administration, aims to establish a formal regulatory framework for stablecoin issuers, giving traditional banks more room to participate in the sector. “The shift in policy is creating an opportunity for banks like ours to engage on a level playing field,” Fraser noted.

Citigroup eyes blockchain expansion

Internally, Citigroup already operates a blockchain-based platform through its Citi Token Services, primarily for secure, tokenised payments and settlement among institutions. However, the bank is now weighing more external-facing strategies, including potential partnerships with third-party providers.

According to Biswarup Chatterjee, Global Head of Partnerships and Innovation at Citi Services, conversations about the initiative are gaining momentum within senior leadership. “This is a key topic at the top level,” he said, indicating that no strategic options have been ruled out.

As Congress continues to work on long-term cryptocurrency legislation and financial watchdogs scale back previous restrictions, Citigroup’s exploration of a stablecoin could place it among the first major banks to integrate blockchain-based currency solutions into mainstream finance.