JPMorgan and Citigroup Investigate Stablecoins as Digital Payment Adoption Increases
Two major banks, JPMorgan and Citigroup, are increasing their involvement in the world of stablecoins. Following recent earnings discussions, both banks highlighted their initiatives to integrate these digital assets into their operations.
Dimon Steps Off the Sidelines
Jamie Dimon, who has long been skeptical about stablecoins, is now shifting his stance. JPMorgan has developed its internal deposit token called JPMD, which operates on its Base blockchain. The bank aims to explore external stablecoins through upcoming testing phases.
“We are looking at the issuance of a Citi stablecoin” — Jane Fraser, Citigroup Q2 2025 earnings call
Dimon mentioned that staying competitive with fintech innovations is a key reason for this shift. He emphasized the need to adapt swiftly to new digital payment solutions.
Citigroup Explores Its Own Stablecoin
Similar to JPMorgan, Jane Fraser has indicated Citigroup’s interest in establishing a Citi-stablecoin. While still in preliminary stages, this plan reflects the internal momentum within the bank to revolutionize digital payments.
Citigroup anticipates that the stablecoin market may reach over three trillion dollars by the decade’s end, motivating their exploration into this field.
Why It Matters
These developments represent a significant shift in the banking sector’s attitude towards stablecoins, previously viewed with skepticism due to regulatory uncertainties. Recent legislative efforts in Washington, including the proposed GENIUS Act, may alter this landscape, providing clearer guidelines.
Dimon pointed out that regulatory factors remain critical. Banks are unlikely to expand their efforts without robust legal frameworks, but having a strategy enables them to act promptly when clarity emerges.
Fraser connected Citi’s advancements in digital assets to a broader strategy surrounding digital reserves and asset management, hoping to prepare for a new financial ecosystem.
Other Banks Are Getting Involved
JPMorgan and Citigroup are not alone in this venture. Other financial institutions, including Bank of America and Wells Fargo, are also considering collaborative stablecoin projects, indicating a heightened interest across the banking industry.
What Comes Next
Both banks are expected to advance their testing quietly while observing regulatory developments. JPMorgan plans to trial select third-party stablecoins, while Citigroup may prioritize building its internal capabilities for a future stablecoin launch.
The banking system is increasingly recognizing stablecoins, with notable financial movements within the realm of fintech suggesting traditional finance’s growing engagement in this digital frontier.
