Citigroup is currently evaluating the feasibility of launching its own stablecoin as part of broader efforts to enhance its digital payment infrastructure.

This initiative, still under consideration, is one aspect of the bank’s ongoing activities in the digital asset space, which also encompass tokenized deposits and crypto custody services.

Focus on Tokenized Deposits and Crypto Services

Citigroup’s CEO highlighted during the second-quarter earnings call that discussions regarding a proprietary stablecoin are still underway. However, she noted that the institution is focusing more significantly on tokenized deposits due to their current active engagement and perceived future potential.

In addition to exploring stablecoin issuance, Citigroup is also examining how it can support reserve management for these assets. The bank’s officials mentioned ongoing work to provide custody services for crypto-related assets, as part of the institution’s efforts to adapt to evolving digital finance trends.

These developments came in the wake of the bank’s latest earnings results, which exceeded analyst forecasts. Citigroup also announced plans for a share buyback program worth at least USD 4 billion, with its stock reaching its highest point since the 2008 financial crisis following this announcement.

It is important to note that recent legislation has been advanced in the US Senate concerning stablecoin regulation. On May 20, 2025, the Senate voted 66-32 in favor of advancing the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. This bill includes requirements for collateralization and anti-money laundering measures.

The proposal advanced despite divisions within the Democratic party, with some senior figures opposing it, while others supported the revised version as a compromise solution.