Citigroup, the third-largest bank in the United States, is considering issuing its own stablecoin to expand its digital payment infrastructure. This information was shared after an earnings call with analysts.
Potential Citi Stablecoin
CEO Jane Fraser stated that Citigroup is exploring the idea of a 'Citi stablecoin,' primarily focusing on tokenized deposits. The bank is also considering managing stablecoin reserves or providing custody services for crypto assets.
Interest in Stablecoins on Wall Street
Citigroup's move is seen as part of the recent surge in stablecoin interest on Wall Street. Earlier this week, JPMorgan CEO Jamie Dimon confirmed his bank's involvement in stablecoins and deposit coins. Reports also surfaced that JPMorgan is planning to launch a blockchain-based asset called 'JPMD' on the Base network.
Forecasts for the Stablecoin Market
Geoffrey Kendrick, Head of Digital Asset Research at Standard Chartered, mentioned that 90% of his recent discussions with policymakers and clients have focused on stablecoins. He expects the market capitalization of stablecoins to surpass $750 billion by the end of 2026, which will begin to have significant impacts on traditional financial assets.
Institutions like Citigroup and JPMorgan are ramping up their efforts in stablecoins amid growing industry interest and regulatory initiatives, which may significantly impact the financial system.
