Citigroup CEO says he supports tokenized deposits, stresses market focus on stablecoins

According to CoinDesk, Citigroup CEO Jane Fraser emphasized during its third-quarter earnings call that tokenized deposits—not stablecoins—will be the key driver of the next-generation payment system and financial market infrastructure.

She noted that institutional clients are currently focused on low-cost, compliant solutions that enable seamless, real-time cross-border fund flows, and that tokenized deposits are the best way to meet this demand, offering a secure, reliable, multi-bank interoperable, and "always-on" payment experience.

Citi has invested heavily in digital asset infrastructure, and its tokenization services currently cover over 40 markets, connecting over 250 banks and enabling instant fund transfers. However, Fraser acknowledged that the main challenge facing current adoption is that corporate treasury departments haven't fully adapted to the 24/7 financial environment.

While Citi will continue to support stablecoins, she noted that stablecoins present compliance burdens in areas such as anti-money laundering and tax reporting, which tokenized deposits can effectively mitigate.

Fraser cautioned against excessive speculation in stablecoins, believing that most existing payment and settlement issues will be resolved through tokenized deposits. She further envisioned that the applications of tokenization technology extend far beyond payments, with the issuance and settlement of all types of assets poised for tokenization.

Meanwhile, regulators are actively promoting responsible technological innovation, and Citigroup plans to incorporate tokenization as a key tool into its future financial services system.