Citigroup eyes tokenized deposits

Author: Helene Braun, Coindesk; Compiler: shark@黄金财经

Key Points

• Citi CEO Jane Fraser said tokenized deposits, not stablecoins, will drive the future of digital payments because they offer less friction and better regulatory compliance.

• Fraser noted that while Citi supports stablecoin infrastructure, corporate treasuries are not yet ready for 24/7 funding, slowing their wider adoption. Citi is expanding its tokenization services with a 24/7 U.S. dollar clearing network and exploring the tokenization of assets such as equities and commodities. Citigroup CEO Jane Fraser has taken a clear stance on the future of digital finance, telling investors that tokenized deposits, not stablecoins, will be the primary engine behind the next generation of payments and financial market infrastructure. In a call with investors following the bank’s third-quarter earnings report on Tuesday, Fraser explained that institutional clients are demanding seamless, real-time cross-border money flows that are both low-cost and compliant. “Our clients want interoperable, multi-bank, always-on, secure and reliable payment solutions,” she said. “Tokenized deposits are the best way to achieve that.” Citi has invested heavily in digital asset infrastructure, including its own 24/7 U.S. dollar clearing network. Fraser stated that the bank's tokenization service currently connects over 250 banks in over 40 markets, enabling clients to instantly transfer funds to suppliers and third parties. However, she noted that the biggest bottleneck to wider adoption isn't technology, but rather that many corporate treasuries aren't yet prepared for a 24/7 financial environment. While Citi will continue to support stablecoins—providing on/off ramps, custody services, and cash management for stablecoin providers—Fraser emphasized that stablecoins introduce additional operational friction, including regulatory burdens related to anti-money laundering (AML), tax reporting, and accounting. "Our tokenized deposit functionality avoids these additional requirements," she said. Fraser previously stated that Citi is exploring the possibility of issuing its own stablecoin, but she cautioned against overhyping the asset class. "There's currently an overabundance of attention on stablecoins," she said. "Much of this will be addressed with the tokenized deposit functionality." Looking ahead, Fraser sees tokenization expanding far beyond payments. She noted that in the future, the issuance and settlement of various assets, from oil to stocks, will take place through tokenized channels in a regulated, trusted environment.

  The key, she said, is for regulators to start promoting responsible innovation.

  "We will use this as part of our toolkit," Fraser said. "It's great that regulators are now allowing us to innovate in a responsible way. This will really help the market develop."