Tokenized Deposits to Drive Future Financial Infrastructure, Says Citigroup CEO

According to PANews, Citigroup CEO Jane Fraser has emphasized that tokenized deposits, rather than stablecoins, will be the primary driver of next-generation payment and financial market infrastructure. During the third-quarter earnings call, Fraser highlighted that institutional clients are seeking low-cost, compliant, and seamless real-time cross-border fund flows. She stated that tokenized deposits offer the most secure, reliable, multi-bank interoperable, and always-on payment solutions. Citigroup has heavily invested in digital asset infrastructure, with its tokenization services connecting over 250 banks across more than 40 markets to enable instant transfers. However, Fraser noted that widespread adoption faces challenges as corporate finance departments struggle to adapt to a 24/7 financial environment. While Citigroup will continue to support stablecoins, Fraser pointed out that stablecoins come with compliance burdens such as anti-money laundering and tax reporting, which tokenized deposits can avoid. Fraser cautioned against excessive hype around stablecoins, asserting that most issues can be addressed through tokenized deposits. She also mentioned that the future of tokenization will extend beyond payments, with various asset issuances and settlements becoming tokenized. Regulatory efforts are pushing for responsible innovation, and Citigroup plans to incorporate these advancements into its toolkit.