Citigroup Joins Stablecoin Race Amid Institutional Surge

Citigroup has announced plans to develop its own stablecoin, following JPMorgan's entry into the rapidly growing sector. The MOVE comes despite JPMorgan CEO Jamie Dimon's well-known skepticism about cryptocurrencies, highlighting the institutional imperative to participate in digital asset innovation.

Bank researchers project the stablecoin market could reach $3.7 trillion by 2030, with Citigroup exploring additional crypto services including reserve management and custody solutions. "We're particularly focused on the tokenized deposit space," said CEO Jane Fraser, suggesting a broader institutional adoption pathway.

The announcement coincides with Citigroup's strongest stock performance since the 2008 financial crisis, creating optimal conditions for expansion into digital assets. Market activity has surged across multiple blockchains as regulatory clarity appears imminent.