Citigroup may become one of the first major banks on Wall Street to provide stablecoin payment services, representing a significant step towards wider acceptance of tokenized dollars following the enactment of the GENIUS Act this year.
As reported by Bloomberg, Citi has joined forces with crypto exchange Coinbase to enhance its digital asset capabilities, initially concentrating on facilitating client fund transfers between fiat and crypto currencies.
Debopama Sen, Citi’s payments head, indicated that the bank’s clients increasingly desire programmability, conditional payments, and improved speed and efficiency, along with 24/7 payment access.
Sen noted that Citi is “exploring solutions to enable onchain stablecoin payments for our clients” in the near term.
“Stablecoins will serve as an additional enabler within the digital payment ecosystem, fostering growth and functionality for our clients,” Sen mentioned.
Citi’s focus on stablecoins isn’t surprising. The latest news comes just a month after the bank significantly raised its outlook for the digital dollar market. By 2030, Citi now predicts that the stablecoin market could soar to $4 trillion, up from approximately $315 billion today.
Related: Tether’s stablecoin business set for another record year of profitability
Wall Street banks are betting on stablecoins
The enactment of the US GENIUS Act, which establishes a regulatory framework for stablecoins and comes into effect in early 2027, has motivated major banks to investigate their own stablecoin projects.
Citigroup is part of an expanding cohort of Wall Street institutions, including JPMorgan and Bank of America, venturing into stablecoin services. Even longstanding crypto skeptic Jamie Dimon, CEO of JPMorgan, recently stated to shareholders that the bank “plans to be involved” in stablecoin advancements.
Investor excitement is growing in tandem with institutional interest. Circle, the issuer of USDC (USDC)—the second-largest dollar-pegged stablecoin—went public earlier this year, enjoying a blockbuster debut and its stock soaring 167% on the first trading day.
Circle currently holds a market capitalization of approximately $35 billion.
Related: Tokenized money market funds emerge as Wall Street’s answer to stablecoins
