Citi Explores Stablecoin Issuance as Regulatory Climate Warms

Citigroup CEO Jane Fraser confirmed the bank is actively exploring the creation of a proprietary stablecoin during Tuesday's earnings call. The Wall Street institution joins a growing cohort of traditional financial players embracing blockchain infrastructure, with tokenized deposits and crypto custody services also under consideration.

Regulatory tailwinds appear to be accelerating institutional adoption. Fraser specifically cited the TRUMP administration's Genius Act - proposed legislation creating a framework for stablecoin issuers - as enabling greater bank participation in digital assets. Recent Federal Reserve decisions to eliminate pre-approval requirements for crypto activities have further cleared the path.

The announcement follows similar moves by major US banks in recent months, signaling a strategic pivot toward blockchain-based financial instruments. While no implementation timeline was provided, Citi's exploration reflects mounting institutional confidence in stablecoins as a bridge between traditional finance and decentralized ecosystems.