Citigroup Explores Stablecoin Launch Amid Regulatory Shifts

Citigroup Inc. is positioning itself at the forefront of traditional banking's foray into digital assets, with plans to develop its own stablecoin. CEO Jane Fraser unveiled the initiative during the Q2 earnings call, framing it as part of a broader strategy encompassing tokenized deposits and crypto custody solutions.

The bank's MOVE coincides with advancing crypto legislation in Congress, including the GENIUS Act, which provides a regulatory framework for stablecoins. Fraser emphasized the importance of regulatory clarity, noting past challenges for banks in competing on equal footing within the digital asset space.

Citigroup's existing Citi Token Services network currently employs a deposit token model. The bank is now evaluating external implementation strategies, potentially involving partnerships with fintech firms and third-party platforms.