Citigroup CEO Jane Fraser made it clear that tokenized deposits, rather than stablecoins, will be the primary driver of the next generation of payments and financial marekt infrastructure. In a Q3 investor call, she described tokenized deposits as the best way to enable secure, reliable, multi-bank interoperable and always-on payment solutions for institutional clients seeking low-cost, compliance and seamless real-time cross-border fund flows.
Citi has invested heavily in digital asset infrastructure, and its tokenization service can connect more than 250 banks in more than 40 markets to enable instant transfers. However, Fraser pointed out that the barrier to popularity is the difficulty of corporate finance departments to adapt to the 24/7 financial environment. Citi will continue to support stablecoins, but stablecoins have anti-money laundering and tax filing compliance burdens, which can be avoided by tokenized deposits. She also cautioned against overhyping stablecoins, saying that most problems will be solved by tokenized deposits. In the future, she pointed out that the application of tokenization will far exceed payment, all kinds of asset issuance and settlement will be tokenized, and regulation is promoting responsible innovation, and Citi will include it in the toolkit.
Citigroup CEO: Supporting tokenized deposits, the market is overly focused on stablecoins
2025-10-15 01:15:36
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