Citigroup CEO Jane Fraser announced the bank is exploring the development of its stablecoin and expanding into tokenised deposits, marking a significant move into digital assets by one of the world’s largest financial institutions.
The bank’s research arm, Citi Institute, projects that the stablecoin market could reach $1.6 trillion by 2030 in a base-case scenario, with potential growth of up to $3.7 trillion in bullish conditions. Fraser emphasised the bank’s focus on tokenised deposits and confirmed they are exploring crypto custody solutions.
This development aligns with a broader trend of traditional financial institutions entering the stablecoin space, following JPMorgan’s ongoing pilot of its JPMD stablecoin with institutional clients. However, regulatory uncertainty persists as recent House gridlock has stalled progress on key digital asset legislation, including the GENIUS Act, despite its earlier Senate approval.
Despite regulatory challenges, major banks continue to advance their digital asset initiatives, signalling growing institutional confidence in stablecoin technology and its potential to transform digital payments.
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