Citigroup CEO Jane Fraser has made it clear that the bank sees tokenized deposits, not stablecoins, as the driving force behind the next evolution of global payments and financial infrastructure.
Speaking during Citi’s third-quarter earnings call, Fraser said institutional clients increasingly demand real-time, low-cost, and compliant cross-border transactions, which tokenized deposits can deliver more efficiently than stablecoins.
“What our clients want is interoperable, multi-bank, always-on payment solutions provided in a safe and sound manner,” she noted. “That is best done by tokenized deposits.”
Citi has already built a 24/7 U.S. dollar clearing network, connecting with over 250 banks across 40 markets, allowing corporate clients to move funds instantly. Fraser added that the biggest obstacle to adoption isn’t technology but corporate readiness, many treasury departments still aren’t prepared for continuous, around-the-clock financial operations.
While Citi continues to support stablecoins through custody, cash management, and on/off-ramp services, Fraser argued that tokenized deposits face fewer regulatory hurdles, such as AML compliance and accounting complexities.
“There’s an overfocus on stablecoin at the moment,” she said. “Most of this is going to get solved by tokenized deposit capabilities.”
Fraser also predicted that tokenization will eventually transform not only payments but the issuance and settlement of assets like commodities and equities, all within a regulated and trusted environment.
“It’s terrific that regulators are now letting us innovate responsibly,” she concluded. “That will really help the development of the market.”
