Citigroup has explored the idea of launching its own stablecoin as part of wider efforts to expand its digital payments infrastructure.
The move, still under consideration, forms part of the bank’s work in the digital asset space, which also includes tokenised deposits and crypto custody services.
Citigroup’s CEO confirmed during the bank’s second-quarter earnings call that discussions around a proprietary stablecoin are ongoing but noted that the institution is placing greater emphasis on tokenized deposits. She described the area as one where the bank is already actively engaged and sees considerable potential for application.
Focus on tokenized deposits and crypto services
In addition to exploring stablecoin issuance, the bank is looking into how it could support reserve management for stablecoins. Officials also mentioned work underway to provide custody services for crypto-related assets, part of Citigroup’s continuing efforts to adapt to the evolving digital finance landscape.
The comments followed Citigroup’s latest earnings results, which surpassed analyst forecasts. The bank also announced a planned share buyback of at least USD 4 billion. Its stock briefly reached its highest point since the 2008 financial crisis in the wake of the announcement.
It's worth noting that the US Senate has recently advanced new legislation on stablecoin regulation. On 20 May 2025, the Senate voted 66–32 in favour of advancing the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. The bill sets out requirements for collateralization and includes anti-money laundering measures.
The proposal moved forward following renewed negotiations over the weekend that produced a revised draft. While over a dozen Senate Democrats supported the bill, leadership within the party, including senior figures, remained opposed and voted against the motion to proceed. The updated version of the legislation was enough to gain the backing of some Democratic lawmakers who had previously resisted the measure.
