Citigroup could become one of the first major Wall Street banks to offer stablecoin payments services, marking a potential step in the broader adoption of token dollars following the passage of the GENIUS Act earlier this year.
According to BloombergCiti has partnered with crypto exchange Coinbase to expand its digital asset capabilities, initially focusing on making it easier for customers to move funds between fiat currency and crypto.
Debopama Sen, head of payments at Citi, said the bank’s customers are increasingly looking for programmability, conditional payments, greater speed and efficiency, and access to payments around the clock.
Sen added that Citi is “exploring solutions to enable our customers to pay stablecoins on-chain” in the near future.
“Stablecoins will be another catalyst in the digital payment ecosystem and will help expand the space and increase functionality for our customers,” Sen said.
Citi’s focus on stablecoins is hardly surprising. The latest developments come just a month after the bank sharply raised its forecast for the digital dollar market. By 2030, Citi now estimates the stablecoin market could reach $4 trillion, up from around $315 billion today.
Related: Tether’s stablecoin business poised for another record year of profitability
Wall Street banks are betting on stablecoins
The passage of US GENIUS Lawwhich establishes a regulatory framework for stablecoins and will take effect in early 2027, has created a sense of urgency among major banks to explore their own stablecoin initiatives.
Citigroup is part of a growing group of Wall Street institutions, including JPMorgan and Bank of America, in the first steps in the development of stablecoin-related services. Even JPMorgan CEO Jamie Dimon, a longtime crypto skeptic, recently told shareholders that the bank “plans to get involved” in stablecoin development.
Investor enthusiasm is increasing alongside institutional interest. Circle, the issuer of USDC (USDC) – the world’s second-largest dollar-pegged stablecoin – went public earlier this year in a blockbuster debut, with its title up 167% the first day of trading.
Circle currently has a market capitalization of approximately $35 billion.
Related: Tokenized money market funds emerge as Wall Street’s answer to stablecoins
