Citigroup Explores Proprietary Stablecoin Amid Regulatory Momentum

Citigroup CEO Jane Fraser confirmed the bank's interest in issuing a proprietary stablecoin during its Q2 earnings call, signaling a strategic push into digital assets. The announcement follows a strong quarterly performance that saw shares hit post-2008 highs, with $4 billion allocated to stock buybacks.

The MOVE coincides with Washington's 'Crypto Week', where Republican lawmakers are advancing the GENIUS Act to integrate stablecoins into traditional finance. Citigroup's dual focus on stablecoin development and tokenized deposits reflects growing institutional demand for blockchain-based financial instruments.

As the third-largest U.S. lender explores reserve management solutions for stablecoins, the initiative could accelerate mainstream adoption. Regulatory hurdles remain, but the bank's custody service expansion for crypto assets demonstrates long-term commitment to the sector.