- Citi has reportedly explored launching its own U.S. dollar-backed stablecoin for institutional use
- Executives have discussed the idea internally, with use cases tied to clearing, settlements, and cross-border payments
- The bank has not yet committed to development, but it has intensified blockchain research within Citis innovation labs
Citigroup has reportedly examined the feasibility of issuing its own stablecoin , aiming to modernize financial infrastructure for institutional clients. Although no official decision has been made, discussions have focused on using blockchain-based tokens for streamlining internal operations, particularly in clearing and settlement. The move could put Citi in direct competition with other financial giants operating similar technologies, such as JPMorgans JPM Coin, as banks continue to seek ways to use blockchain to their advantage.
Institutional Efficiency Through Blockchain
News of Citis plans broke following an earnings call on Tuesday, where the banks CEO, Jane Fraser, told analysts that the bank is looking at the issuance of a Citi stablecoin, adding that it is exploring& reserve management for stablecoins, the on- and off-ramps from cash and coin backwards and forwards. The benefits of such a move are clear, in particular with international transactions, where transaction times would be reduced to seconds rather than days, and costs would be fractions of a penny, if not free.
Any such blockchain would almost certainly be a private, permissioned blockchain, perhaps a flavor of the popular Quorum , on which JPM Coin is based. Citi has already been active in blockchain experimentation, previously piloting tokenized deposits and using distributed ledger technology for trade finance. Though still in the exploratory phase, the Citi Coin initiative falls in line with broader trends among major financial institutions that are gradually embracing tokenized finance.
Citi Coin A Threat to JPMorgan?
Frasers confirmation adds meat to the bones first put out there in May by the Wall Street Journal , which said that institutions including Bank of America, Wells Fargo, Citi, and JPMorgan had held preliminary talks about creating a shared stablecoin . Of course, JPMorgan has its own JPM Coin, which launched in 2020 and has seen international adoption through its which has since been adopted by its which has processed billions in daily institutional transactions .
It seems that Citis offering will be different, however, with the group apparently more focused on building a proprietary infrastructure rather than simply using blockchain to wrap traditional services. If launched, the stablecoin could become a critical building block in Citis broader Regulated Liability Network vision, a consortium-led effort to modernize the global payments landscape.
