The Wall Street heavyweight has joined forces with Coinbase to modernize client transfers and settlement systems, aiming to bridge traditional banking with on-chain finance.
A Shift Toward Tokenized Money
The initiative comes as global banks accelerate their experimentation with tokenized dollars following the passage of the U.S. GENIUS Act, which established the first federal framework for stablecoins earlier this year. Sources familiar with Citi’s roadmap say the bank is building the foundations for programmable, always-on payments that could rival the speed and transparency of blockchain-native systems.
Debopama Sen, Citi’s global head of payments, described the move as a natural progression of client needs. She said businesses increasingly want tools that support instant settlement and conditional transactions — areas where stablecoins can provide a competitive edge. According to Sen, Citi’s on-chain payment model will allow clients to move between fiat and digital assets with greater efficiency.
The Banking Race for Stablecoin Adoption
Citi’s stablecoin exploration puts it in direct competition with other major U.S. banks. JPMorgan has already been testing its JPM Coin system for instant settlements, while Bank of America is reportedly studying tokenized deposit frameworks. Even long-time crypto skeptics like Jamie Dimon have begun acknowledging the potential of blockchain-based payment rails.
The shift marks a wider recognition among financial institutions that stablecoins — digital tokens pegged to fiat currencies — could serve as a cornerstone for next-generation payment infrastructure. Citi’s research team recently projected the global stablecoin market to reach $4 trillion by 2030, up from just over $300 billion today.
The sector’s explosive growth has also drawn attention from traditional investors. Circle, the issuer of USDC, went public earlier this year in one of the most high-profile listings in the crypto space, its stock jumping more than 160% on debut. With a $35 billion market cap, Circle’s rise underscores the increasing convergence between regulated finance and blockchain innovation.
A Quiet Revolution in Banking
Citi’s exploration of on-chain payments represents a gradual but significant shift in how global banks approach financial infrastructure. By using stablecoins for programmable and near-instant settlements, the firm aims to reduce friction in cross-border transfers and build new revenue models tied to digital asset services.
While full-scale rollout will depend on regulatory timing and market readiness, Citigroup’s latest step signals that tokenized money is no longer a theory — it’s becoming a strategic focus for the world’s largest financial institutions.