Citigroup has been considering the launch of its own stablecoin as part of broader initiatives aimed at enhancing its digital payment infrastructure.

This ongoing consideration is one aspect of Citigroup’s growing involvement in the digital asset space, alongside tokenized deposits and crypto custody services.

Primary Focus on Tokenized Deposits and Crypto Services

Citigroup’s CEO mentioned during the bank’s second-quarter earnings call that discussions about issuing a proprietary stablecoin are ongoing. However, she emphasized that the institution is increasingly focusing on tokenized deposits, describing it as an area where the bank is already deeply engaged and sees significant opportunities.

The bank is also exploring ways to support reserve management for stablecoins and has begun working on providing custody services for crypto-related assets. These efforts are part of Citigroup’s ongoing adaptation to the evolving digital finance landscape.

Following recent earnings results that exceeded analyst expectations, Citigroup announced a planned share buyback worth at least USD 4 billion. The announcement sent its stock reaching its highest level since the 2008 financial crisis.

New Legislative Developments in Stablecoin Regulation

The United States Senate recently advanced new legislation aimed at regulating stablecoins. 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 outlines requirements for collateralization and includes anti-money laundering measures. It follows negotiations that led to a revised draft, which secured support from some previously resistant Democratic lawmakers.