Citigroup Eyes Citi Stablecoin & Crypto Custody Push to Dominate Tokenized Finance

What’s Happening

• Stablecoin Ambition: Citigroup is planning a stablecoin launch, positioning itself as a major player in digital payments .

• Tokenized Deposits & Custody: The bank is prioritizing tokenized deposit infrastructure and developing custody services for digital assets Cryptonews+1Reuters+1.

• Institutional Drive: Citigroup is also building reserve management—indicating support for other stablecoins through custody or reserve control CoinGape+14Cryptonews+14BeInCrypto+14.

Strategic Significance

1. TradFi-Adapting to Web3: Banks like Citi and JPMorgan are entering the stablecoin space to retain relevance and compete with fintech disruptors CoinCentral+2BeInCrypto+2Investopedia+2.

2. Accelerating Tokenized Finance: With stablecoin issuance, tokenized deposits, and custody, Citi is setting a new mantle for next-gen payments and cross-border settlement.

3. Market Outlook: Citigroup projects stablecoins reaching $2–4 trillion in market cap by 2030—up from ~$260 billion today CryptoSlate+2Cryptonews+2Bloomberg.com+2.

Risks & Caveats

• Regulatory Unknowns: Key U.S. legislation (e.g. GENIUS Act) is in progress, creating uncertainty around banking involvement in stablecoins Reuters+14BeInCrypto+14CryptoSlate+14.

• Consortium Pressure: Other banks—including JPMorgan, BofA, and Wells Fargo—are considering a joint stablecoin, which may dilute Citi’s lead Cryptonews+3The Wall Street Journal+3BeInCrypto+3.

Outlook

As policy clarity emerges and infrastructure matures, Citigroup is well-positioned to compete with fintech and institutional giants with a multi-faceted crypto strategy.