The third-largest bank in the US is signaling intentions to enhance its digital asset capabilities and offerings.
In an earnings call for the second quarter of 2025, Citigroup CEO Jane Fraser says stablecoins are the “next evolution in the broader digitization of payments, financing and liquidity.”
According to Fraser, the trillion-dollar bank intends to, among other things, issue a stablecoin and offer custody services for crypto assets.
“So four main areas that we’re exploring [are] reserve management for stablecoins, the on and off ramps from cash and coin, backwards and forwards. We are looking at the issuance of a Citi stablecoin.
But probably most importantly is the tokenized deposit space where we’re very active. And then also providing custodial solutions for crypto assets. So this is a good opportunity for us.”
According to the Citigroup CEO, the third-largest US bank’s potential stablecoin will have a cost advantage when used for making payments.
“So if you keep in mind right now, stablecoins about 88% of all stablecoin transactions are used to settle crypto trades.
There’s only 6% which is payments. In a traditional offering, if you are moving from cash to stablecoin and back to cash, right now, you’re incurring as much as a 7% transaction cost. I mean, that’s just prohibitive. So this is where Citi Token Services is so exciting because it enables the client to move from physical fiat to the digital and back again without incurring that transaction cost.”
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