Citigroup Doubles Down on Crypto: Launches Stablecoin & Expands Custody Services in 2025 Power Play

Wall Street's sleeping giant finally wakes up—with a blockchain bang. Citigroup just fired a twin salvo into the digital asset space, announcing a proprietary stablecoin alongside ramped-up custody solutions. Because nothing says 'we believe in decentralization' like a 209-year-old bank issuing its own tokenized debt.

The move positions Citi as the latest—and arguably most conflicted—player in the institutional crypto gold rush. Their custody arm now battles startups like Anchorage while their stablecoin will compete with Circle's USDC... which ironically runs on infrastructure partly built by Citi.

Banking insiders whisper this could presage a full suite of crypto services—from trading to tokenized securities. 'They're building the plumbing to profit whether crypto succeeds or gets co-opted,' notes one hedge fund CTO. Translation: JPMorgan's blockchain playbook works so well, even their rivals are copying it.

The real tell? Citi's timing. With BlackRock's ETF inflows hitting record highs and stablecoin transaction volumes doubling since 2023, the bank isn't betting on crypto's future—it's chasing today's money. Classic Wall Street: late to the party, but first in line at the open bar.

Citigroup Builds Crypto Custody Framework

Fraser said the bank is also exploring reserve management for stablecoins and developing custody solutions for crypto assets.

*CITI CEO JANE FRASER: CITIGROUP IS EXPLORING ISSUING A STABLECOIN$C pic.twitter.com/790Ob0UZ3Y

Citi isn’t just trying to keep up in the stablecoin space. Fraser said the real goal is to upgrade the bank’s infrastructure in ways that bring clear, real-world benefits to its clients.

“We aim to deliver the benefits of advancements in stablecoin and digital assets to our clients in a SAFE and sound manner by modernizing our own infrastructure and improving efficiency, transparency, and interoperability,” Fraser said.

Citi Bets on Stablecoins for 24/7 Finance

As digital payments shift toward always-on, instant settlement, stablecoins offer a bridge between traditional finance and the crypto-native world. Fraser said that Citi’s focus is guided by customer needs.

“Digital assets are the next evolution in the broader digitization of payments, financing, and liquidity,” she said. “Ultimately, what we care about is what our clients want and how do we meet that need.”

The bank’s strategy includes four focus areas: reserve management, custody services, seamless fiat-to-crypto on and off ramps, and tokenized deposits. Together, these could FORM the foundation of a robust offering that positions Citi at the heart of a rapidly changing payments landscape.

Stablecoin Market Set to Top $2 Trillion

Citigroup is not alone in this effort. Earlier this year, The Wall Street Journal reported that JPMorgan Chase, Bank of America, Citigroup and Wells Fargo had begun exploring a possible shared stablecoin initiative. The project, if realized, could accelerate institutional adoption of blockchain technology.

The stablecoin market, once a niche corner of the crypto world, is growing rapidly. Citi projects that market capitalization could rise from roughly $260b today to over $2t by 2030.

Under a base-case scenario, the bank sees supply hitting $1.6t by decade’s end, with a more bullish outlook estimating $3.7t.

For a global bank with exposure to trade finance, treasury services and cross-border flows, venturing into stablecoins makes strategic sense. These digital tokens, pegged to fiat currencies, promise real-time settlement without the inefficiencies of legacy banking rails.

While regulators remain cautious, the broader trend is clear. With clients demanding 24/7 settlement and greater transparency, stablecoins are becoming less of a speculative experiment and more of a necessary upgrade.