Citigroup Eyes Stablecoin Launch, Expands Focus on Tokenized Deposits, Says CEO Jane Fraser

Citigroup CEO Jane Fraser confirmed during the bank’s second-quarter 2025 earnings call that the firm is actively exploring the issuance of a Citi-branded stablecoin, as part of a broader push into digital finance.

“We are looking at the issuance of a Citi stablecoin,” Fraser told analysts during the Q&A portion of the call, while noting that tokenized deposits currently remain the bank’s most advanced initiative. She emphasized that these blockchain-based innovations are helping Citi improve internal operations, unlock new business models, and attract clients seeking next-generation financial infrastructure.

The comments come at a time of growing institutional interest in stablecoins. Originally developed within the crypto ecosystem, these digital dollar-pegged tokens are increasingly being adopted by traditional financial institutions and leveraged for cross-border payments and settlement efficiency.

Citigroup’s own research division has projected that the global stablecoin market could swell to $3.7 trillion by 2030, citing momentum around blockchain adoption and regulatory advances. The bank believes 2025 marks an inflection point for digital assets, especially stablecoins.

Even JPMorgan CEO Jamie Dimon — historically a crypto skeptic — has recently acknowledged the firm’s expanding role in stablecoin initiatives, suggesting growing mainstream acceptance.

Fraser positioned digital assets as the next phase in the evolution of financial services, similar to the earlier transformation ushered in by fintech. She said Citi is responding to client demand for real-time, compliant, cross-border solutions that integrate payment, reporting, and settlement in a seamless ecosystem.

She outlined four strategic focus areas for Citi in the digital asset space:

• Reserve management for stablecoins
• Fiat-digital currency on/off ramps
• Crypto custody solutions
• Tokenized deposit infrastructure — which Fraser described as Citi’s most mature and active vertical.

The announcement also coincides with “crypto week” in Washington, where lawmakers are debating several high-impact bills related to digital asset regulation. Progress, however, was temporarily stalled on Tuesday due to procedural objections from the House Freedom Caucus, particularly around Senate influence on the legislative process.

Meanwhile, Citi reported robust second-quarter financial results. Net income rose to $4.0 billion ($1.96 per diluted share), up from $3.2 billion ($1.52 per share) a year earlier. Revenue climbed 8% year-over-year to $21.7 billion, buoyed by strength across all five of the bank’s core divisions.