Citigroup, one of Wall Street's major banks, is stepping into the world of digital finance by exploring the issuance of its own stablecoin.
Wall Street Banks Increasing Interest in Crypto
CEO of Citigroup, Jane Fraser, confirmed that the bank is looking into the issuance of a stablecoin, which could reshape how traditional banks use blockchain.
Fraser mentioned that Citi is exploring not only stablecoins but also tokenized deposits and crypto custody services, signaling a deeper push into the digital asset space.
According to *The Wall Street Journal*, JPMorgan, Bank of America, and Wells Fargo are also investigating stablecoin projects.
Genius Act Legislation Facilitates Innovation
Fraser credited the Trump administration’s *Genius Act*, which provides clear rules for stablecoin issuers, for giving banks the confidence to enter the space.
*“We really welcome the administration’s willingness to allow banks to participate in the digital asset space more easily,”* Fraser said.
The Federal Reserve has also rolled back two prior rules that required banks to get pre-approval before engaging with crypto.
Stablecoin Market on the Rise
The stablecoin market is growing, with a circulating supply of $11 billion, and yield-bearing stablecoins account for 4.5% of the total, according to recent data. Over 109 million wallets worldwide now use stablecoins.
The successful listing of Circle, a leading stablecoin issuer, earlier this year highlights the sector’s appeal to both retail and institutional investors.
With Citi entering the stablecoin arena, blockchain and traditional finance are beginning to merge in a way that could reshape global banking. The question is whether other banks will follow Citi's lead.
