Citigroup (C) CEO Jane Fraser stated the banking big is actively growing digital asset capabilities, together with exploring the potential launch of its personal stablecoin.
Fraser stated that “we’re wanting on the issuance of a Citi stablecoin” in the course of the Q&A piece of the financial institution’s second quarter of 2025 earnings call. Nonetheless, Fraser made it clear that tokenized deposits at the moment signify the extra instant focus. She added that these improvements are serving to Citi modernize inner operations, unlock new income streams, and purchase purchasers.
Fraser’s feedback come as stablecoins are having a second this 12 months inside the digital property sector. Extra crypto corporations and conventional banks are leaping into the stablecoin sector, as they’re more and more used for buying and selling and cross-border funds.
Citi’s personal analysis staff stated this 12 months could possibly be a pivotal 12 months for blockchain adoption, driven by the growth of stablecoins, and by 2030, the stablecoin market, primarily pegged to the U.S. greenback, may develop as much as $3.7 trillion.
Even Jamie Dimon, CEO of world banking big JPMorgan (JPM), and a crypto skeptic, recently said that the financial institution plans to get extra concerned in stablecoins.
In the course of the earnings name, Citi’s Fraser stated the financial institution views digital property as the following step within the broader digitization of finance, echoing the sooner shift introduced on by fintech. She emphasised that Citi’s technique is centered on assembly shopper demand for seamless, cross-border, multi-bank, always-on options with built-in compliance, reporting, and accounting options.
She outlined 4 key areas Citi is pursuing: stablecoin reserve administration, on- and off-ramps between fiat and digital currencies, custodial companies for crypto, and tokenized deposits — calling the final of those its most lively space.
Citi’s upbeat stablecoin feedback additionally come throughout so-called “crypto week,” when U.S. regulators are set to go a number of payments to offer extra regulatory readability on stablecoins and different digital property. Nonetheless, the payments’ passage hit a roadblock on Tuesday as members of the Home Freedom Caucus objected to the way in which a number of the laws had developed beneath Senate dominance.
Citigroup reported second-quarter 2025 internet earnings of $4.0 billion, or $1.96 per diluted share, up from $3.2 billion, or $1.52 per share, a 12 months earlier. Income rose to $21.7 billion, an 8% improve from Q2 2024, pushed by progress throughout all 5 of the financial institution’s core companies.