Citigroup CEO backs crypto legislation, reveals stablecoin ambitions

Citigroup CEO Jane Fraser endorses US cryptocurrency legislation, specifically backing the GENIUS Act to enable traditional bank participation in digital assets. While Fraser expresses concerns that stablecoin reward systems could drain bank deposits, Citigroup actively prepares for the future by exploring a Citi-branded stablecoin, rolling out tokenized deposits, and planning a crypto custody service launch in 2026.

Citigroup stablecoin plans

• ▪Citigroup Chair and CEO Jane Fraser confirmed on August 13, 2026, that the financial institution is actively exploring the issuance of a Citi-branded stablecoin.
• ▪Citigroup plans to launch cryptocurrency custody services in 2026 to provide secure storage and management of digital assets for institutional clients.

Tokenized deposit rollout

• ▪Citigroup CEO Jane Fraser framed tokenized deposits as a near-term priority over a standalone stablecoin due to lower operational friction and compliance requirements.
• ▪Citigroup began rolling out tokenized deposit capabilities in late 2024 as a practical starting point operating within existing banking regulatory frameworks.

GENIUS Act legislative momentum

• ▪Citigroup CEO Jane Fraser endorsed the GENIUS Act on August 13, 2026, as a framework to unlock traditional bank participation in digital assets.
• ▪The GENIUS Act, which establishes a federal regulatory framework for stablecoins, passed the United States House of Representatives with a bipartisan 308-122 vote.

Stablecoin rewards controversy

• ▪United States Senators Angela Alsobrooks and Thom Tillis finalized a compromise in the Clarity Act prohibiting rewards for holding assets while permitting transaction-based rewards.
• ▪Citigroup CEO Jane Fraser expressed concern on August 13, 2026, that stablecoin reward systems could drain traditional bank deposits and reduce credit access.
• ▪Traditional banks warn that stablecoin rewards will draw deposits away, while cryptocurrency firms argue that restricting rewards will hamper financial innovation.

Banking industry crypto positioning

• ▪Citigroup is participating in United States Senate engagements regarding broader cryptocurrency market structure legislation expected to continue into late 2025 and early 2026.
• ▪JPMorgan Chase CEO Jamie Dimon opposed the Clarity Act in May 2026, criticizing Coinbase CEO Brian Armstrong during an interview with Fox Business.

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