Citigroup’s Stablecoin Ambitions: Inside the Banking Giant’s Crypto Play
Wall Street's sleeping giant might be waking up to crypto. Citigroup—yes, that Citigroup—is reportedly exploring stablecoin issuance, according to sources familiar with the matter.
Why now? The bank's move comes as traditional finance scrambles to catch up with blockchain-native institutions. JPMorgan's JPM Coin and Goldman's digital asset experiments have set the stage—now Citi wants in.
The regulatory minefield: Banking behemoths diving into stablecoins face tighter scrutiny than crypto-native firms. Expect sleepless nights for Citi's compliance team as they navigate OFAC sanctions and reserve requirements.
Bonus jab: Nothing says 'innovation' like a 200-year-old bank chasing the trend du jour. But hey, better late than never—assuming they don't kill the project in committee purgatory first.
Citigroup’s future plans involving stablecoins
Earlier this year, the banking group expressed interest in offering technology-based services and the issuance of what they called a “Citi stablecoin.” Recently, it has also stated that its plans to help clients navigate reserve management as stablecoins require backing its value in reserves.
It WOULD also offer services that could convert stablecoins into fiat currencies and vice versa.
“Consumers and companies will have multiple payment options, and ultimately, the adoption of stablecoins will depend on factors like cost and ease of access,” he said, adding that banks are able to provide the bridge between stablecoins and fiat.
Although the bank is undoubtedly curious about stablecoins and how they will be able to make use of them, it is also taking a cautious stance as it observes the need for “clear accounting rules regarding stablecoins and their impact on balance sheets and liquidity” according to Khaliq.
He believes that there is still a long way to go before true regulatory clarity can be achieved in terms of stablecoins, stating that it is still “very early” in its development.
Back in April 2025, Citigroup’s latest report showed that stablecoin issuers are poised to become some of the largest holders of U.S. Treasuries by 2030 if the U.S. adopts a regulatory framework. Now that it has, only time will tell if it will reach the predicted $1 trillion surge in additional demand for U.S. Treasuries.
The stablecoin regulatory wave
Most recently, the TRUMP Administration passed the Guiding and Establishing National Innovation for U.S. Stablecoins Act or GENIUS Act. It received majority vote from the House of Representatives on July 18. The bill is aimed at providing the first federal framework for stablecoins.
Hong Kong is next in line. The special administrative region recently passed the Stablecoin Ordinance, which mandates companies to register for a stablecoin issuance license in order to offer services and issue stablecoins pegged to the Hong Kong dollar. It is scheduled to come into effect on August 1.
Even China has begun to mull over softening its stance on digital assets as more and more countries are competing to issue their own stablecoins linked to local currencies, in an attempt to overthrow USD-pegged stablecoin dominance.
