Citigroup CEO Drops a Stablecoin Bombshell!

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In a shocking turn of events, American multinational investment bank Citigroup has announced plans to potentially issue its very own stablecoin. CEO Jane Fraser spilled the beans during a post-earnings conference call, as reported by Reuters.

Fraser emphasized the bank’s focus on both the stablecoin initiative and the growing tokenized deposit sector, stating, “This is a good opportunity for us.”

As the third-largest lender in the United States, Citigroup is also exploring solutions for reserve management related to stablecoins and providing custody services for cryptocurrency assets. 🤑

Citigroup’s Plan For New Stablecoin Initiative

This announcement follows a strong second-quarter performance for Citigroup, which saw its shares reach their highest levels since the 2008 financial crisis. The bank reported earnings that exceeded Wall Street expectations and unveiled plans to buy back at least $4 billion in stock, further bolstering investor confidence.

The timing of Citigroup’s stablecoin discussions coincides with the Republican Party’s “Crypto Week,” a campaign aimed at advancing crucial legislation to establish a regulatory framework for digital assets.

Legislative Setback For Crypto

Despite President Donald Trump’s call for swift passage of the GENIUS Act and the CLARITY Act, the House of Representatives voted against the bill, with the final tally standing at 196-223. Notably, 13 Republican representatives joined Democrats in opposing the motion, marking a rare instance of dissent within the party.

Some House members expressed concerns that the GENIUS Act could inadvertently pave the way for a Central Bank Digital Currency (CBDC). However, the bill includes provisions explicitly prohibiting the Federal Reserve from directly offering services to the public, ensuring that it cannot authorize initiatives like digital wallets or personal accounts related to CBDCs.

The ultimate fate of these crucial crypto bills in the US Congress remains to be seen, as does whether this recent decision will cause financial giants to pause their plans to issue or adopt a major stablecoin for their clients.

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2025-07-16 12:21