15-10-2025 – Citigroup CEO Jane Fraser declared that tokenized deposits, not stablecoins, will become the backbone of next-generation payment infrastructure, challenging the prevailing narrative around blockchain-based finance during the bank’s third-quarter earnings call.
Fraser argued that institutional clients require low-cost, compliant solutions for real-time cross-border transactions—needs that tokenized deposits fulfill more effectively than stablecoins. She positioned tokenized deposits as superior due to their multi-bank interoperability, continuous availability, and built-in security features. Crucially, Fraser highlighted that tokenized deposits sidestep the anti-money laundering and tax reporting burdens that complicate stablecoin operations, making them more attractive for traditional financial institutions navigating regulatory scrutiny.
Citigroup has already deployed significant resources into digital asset infrastructure, with its tokenization services now connecting over 250 banks across more than 40 markets to facilitate instant fund transfers. However, Fraser acknowledged that adoption faces friction as corporate finance departments struggle to adapt legacy systems to a 24/7 operational model. The bank will continue supporting stablecoins but views them as a complementary tool rather than the primary solution.
Looking beyond payments, Fraser predicted that tokenization will expand into asset issuance and settlement processes across various financial products. She emphasized that regulatory frameworks are evolving to support responsible innovation, which Citigroup plans to integrate into its expanding digital toolkit.
