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Citibank and JP Morgan Jump on the Stablecoin Bandwagon: Wall Street’s Tokenized Love Affair

BBG News

Key Insights:

  • Citigroup is considering launching a stablecoin and entering the tokenized deposit space
  • Other heavyweights like JPMorgan are also entering the sector despite previous skepticism
  • Favorable new bills like the GENIUS Act are encouraging more and more banks to embrace stablecoins.

 

The race among traditional finance giants to enter the stablecoin market is heating up. 

Citigroup, one of the largest banks in the United States, has confirmed that it is now looking into the possibility of issuing its stablecoin. This move sets the bank up alongside other major entities like JPMorgan Chase, who are taking steps to enter the digital asset space.

Here is a closer look at what a Citibank entry would mean, and why Wall Street is suddenly so bullish on stablecoins.

Citigroup Eyes Its Own Stablecoin and Tokenized Deposits

Citigroup CEO Jane Fraser recently announced during an earnings call, that the bank is “looking at the issuance of a Citi stablecoin.” She also revealed that the bank is heavily focused on tokenized deposits.

Think of tokenized deposits as blockchain-based representations of funds contained in regular bank accounts.

BREAKING: Citi unveils it’s stablecoin strategy.

And it’s GENIUS ().

Circle spent years fighting for regulatory clarity.

Guess who benefits when the Genius Act passes?

The banks.

Here’s what most people missed:

— Simon Taylor (@sytaylor)

However, Fraser didn’t stop there. She outlined even more plans that include reserve management services for stablecoins and custody solutions for cryptocurrencies. According to Fraser, this move is more and more in line with Citigroup’s long-term vision, and would be a “good opportunity” for the bank.

A Stablecoin Market with Massive Growth Potential

Citigroup’s bullishness on stablecoins isn’t new. Back in April, the bank’s research division released a report predicting that the global stablecoin market could reach $3.7 trillion by 2030. 

That estimate may have seemed overly optimistic at the time. However, recent developments have shown that the stablecoin market already has some serious momentum, and the growth is likely to continue.

As of writing, stablecoins hold a total market cap of around $257 billion, according to DeFiLlama. While that figure still has a long way to go before reaching the trillions, the current growth rate shows that the market can (and might) expand much faster than expected.

According to Standard Chartered’s Global Head of Digital Assets Research, Geoff Kendrick, stablecoins are now front and center in conversations with both clients and policymakers. He believes once the market reaches $750 billion, stablecoins will even start to influence trad-fi financial assets.

JPMorgan’s Reluctant but Strategic Entry

Citigroup’s entry follows on the heels of JPMorgan Chase, which recently confirmed its plans to be involved in both deposit coins and stablecoins. This is especially interesting, considering how JPMorgan CEO Jamie Dimon has long been a vocal critic of cryptos.

1/3 JPMorgan is set to launch a deposit token (JPMD), basically a private stablecoin.This, despite Dimon’s past doubts. Why? Staying competitive means following where the money is headed.

Citigroup’s looking at stablecoins too.

— CoinGate (@CoinGatecom)

However, even Dimon appears to be softening his stance. He has so far acknowledged during a recent earnings call that “our competitors are trying to figure out a way to get into payment systems and rewards programs, and we have to be cognizant of that.”

JPMorgan is reportedly preparing to launch a blockchain-based deposit token called JPMD, which will operate on the Base network. While this isn’t a traditional stablecoin, it is still a massive step towards blockchain-based finance and is a clear indication that big banks are recognizing that the future is digital.

Overall, the recent push from major banks comes as regulatory conditions improve under the administration of U.S. President Donald Trump. One of the major legislative efforts driving this movement has been the GENIUS Act, which is geared towards establishing clarity for USD-backed stablecoins.

As the world moves further towards speed and transparency in payments, stablecoins are expected to play more and more of a role in the revolution.

 

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2025-07-16 22:19

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