Citigroup Explores Stablecoin Issuance as Part of Digital Asset Strategy

Citigroup CEO Jane Fraser confirmed the bank is actively exploring the creation of a proprietary stablecoin during its Q2 2025 earnings call. The announcement positions Citi among traditional financial institutions embracing blockchain-based solutions for treasury and liquidity management.

Fraser framed digital assets as the natural evolution of financial digitization, drawing parallels to fintech's transformative impact. Citi's approach focuses on four pillars: stablecoin reserves, fiat-crypto gateways, custody services, and tokenized deposits—the latter receiving the most immediate attention.

The potential stablecoin issuance comes as Citigroup reports strong quarterly performance, with net income climbing to $4.0 billion from $3.2 billion year-over-year. Revenue grew 8% to $21.7 billion, suggesting the bank may allocate resources toward digital asset infrastructure from a position of strength.