Citigroup may soon become one of Wall Street’s first major banks to introduce stablecoin payment services, signaling a major shift in traditional finance’s approach to digital assets. The move comes as banks rush to adapt to the regulatory clarity brought by the GENIUS Act, which was passed earlier this year and will take effect in early 2027.
According to a recent Bloomberg report, Citigroup has partnered with cryptocurrency exchange Coinbase to expand its digital asset capabilities. The collaboration will initially focus on simplifying fund transfers between fiat currencies and crypto assets for Citi’s clients.
Debopama Sen, Citi’s head of payments, explained that clients are increasingly demanding greater efficiency, conditional payments, and round-the-clock transaction capabilities. She noted that the bank is actively “exploring solutions to enable onchain stablecoin payments” in the near future.
“Stablecoins will be another enabler in the digital payment ecosystem and it’ll help grow the space, it’ll help grow functionality for our clients,” Sen said.
A Push Toward Tokenized Dollars
Citi’s latest initiative underscores a growing confidence in tokenized dollars as a legitimate and practical payment tool. The market has gained momentum for the potential to make payments faster and more transparent, while still maintaining stability.
The bank’s timing is strategic. Just a month ago, Citigroup significantly raised its forecast for the stablecoin sector, predicting the market could soar to $4 trillion by 2030, up from around $315 billion today. With the GENIUS Act providing a clear legal framework for stablecoins, major institutions now see an opportunity to enter the space with less regulatory uncertainty.
Wall Street’s Growing Interest in Stablecoin Market
Citigroup is not alone in this pursuit. Other major banks, including JPMorgan and Bank of America, are also in the early stages of exploring stablecoin-related services. Even JPMorgan’s long-known crypto skeptic CEO, Jamie Dimon recently acknowledged that the bank “plans to be involved” in stablecoin development.
Investor confidence in the sector is also climbing. Earlier this year, Circle, the company behind USDC, went public in a highly anticipated debut. Its stock surged 167% on its first day of trading, and the company now holds a market capitalization of roughly $35 billion.
As Citigroup moves closer to launching its stablecoin services, Wall Street’s traditional boundaries between banking and blockchain appear to be fading. The coming years could mark a turning point in how global finance interacts with digital money.