JPMorgan & Citi Dive Into Stablecoins as Digital Payments Hit Mainstream Adoption
Wall Street giants are finally catching the crypto wave—just as retail leaves them in the dust.
Stablecoins Go Institutional
JPMorgan and Citi are quietly building dollar-pegged token infrastructure, sources say—hedge funds and corporates want faster settlements without the volatility. Too bad they’re a decade behind Bitcoin maximalists.
The Real Play? Cost-Cutting
Forget ‘blockchain innovation.’ These pilots aim to slash cross-border fees by 80%—because why pay Swift when you can mint your own money? (Just don’t call it a private central bank digital currency.)
Regulators Watching Closely
The OCC already greenlit reserve-backed tokens, but the SEC’s circling. ‘Stable’ doesn’t mean risk-free—just ask the 2023 algo-stablecoin graveyard.
Bottom line: When banks FOMO into crypto, you know we’re past the hype cycle. Now if only their KYC forms didn’t take longer than a Bitcoin block time.
Dimon Steps Off the Sidelines
Jamie Dimon has been skeptical of stablecoins for years. He has often questioned why anyone WOULD choose them over standard bank transfers or payment apps. Now, that position is starting to change. JPMorgan already has an internal deposit token called JPMD, which runs on its Base blockchain and is used for select institutional transactions. Now, the bank plans to begin testing external stablecoins as well.
Jane Fraser, Citi $C Q2 2025 earnings call: “We are looking at the issuance of a Citi stablecoin”
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— Jevgenijs Kazanins (@jevgenijs) July 15, 2025
Dimon said the MOVE is about staying ahead. Fintech competitors are building digital payment tools that offer faster settlement and global reach. JPMorgan is not waiting around to see how it all plays out. It wants to be involved early enough to understand what works and what doesn’t.
Citigroup Explores Its Own Stablecoin
Jane Fraser is taking a similar approach. While Citigroup has so far focused on tokenized deposits, Fraser confirmed that the bank is looking into launching a Citi-branded stablecoin. The project is still in its early stages, but the idea is gaining traction internally.
Citi analysts believe the stablecoin market could be worth over three trillion dollars by the end of the decade. That forecast has added urgency to Fraser’s push to explore digital payment rails and new ways of offering liquidity.
Why It Matters
These aren’t just tech experiments. Banks have been wary of stablecoins for years, mainly because of unclear regulations and concerns over compliance. Now, with legislative efforts picking up in Washington, including the proposed GENIUS Act, the environment is starting to change.
Dimon made it clear that regulation is still a major factor. Without strong legal guardrails, large banks are unlikely to move beyond pilots. But having a plan in place gives them the option to move quickly once the path becomes clearer.
Fraser linked Citi’s work on digital assets to a wider effort that includes custody services and digital reserve management. For both banks, this is about preparing for a future where money moves differently.
Other Banks Are Getting Involved
JPMorgan and Citi are not the only ones paying attention. Earlier this year, banks including Bank of America and Wells Fargo joined discussions about a possible joint stablecoin project. That initiative is still in the idea phase, but it shows that interest is growing across the board.
What Comes Next
Both banks are likely to continue testing quietly while monitoring the regulatory front. JPMorgan may begin integrating select third-party stablecoins in small use cases, while Citigroup might focus on building internal infrastructure to support a future launch.
Stablecoins are no longer something the big banks are ignoring. With real money flowing into the space and fintechs moving fast, traditional finance is starting to make its move. Whether these projects reach consumers soon or remain behind the scenes, it is clear that the stablecoin conversation has reached a new level.
Key Takeaways
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