Citigroup CEO Jane Fraser also said the bank is exploring its own stablecoin and expanding its work in tokenized deposits. The announcements come as US lawmakers review the GENIUS Act, which is a bill aimed at regulating stablecoins, and amid rising institutional interest.
JPMorgan and Citi Embrace Stablecoins
JPMorgan Chase, the largest US bank with $3.6 trillion in assets, is expanding its presence in the digital payments sector by actively engaging in the stablecoin space. During the bank’s latest earnings call on Tuesday, CEO Jamie Dimon confirmed that JPMorgan plans to be involved in both its own JPMorgan deposit coin and broader stablecoin initiatives.
Dimon said the move is driven in part by rising competition from fintech companies that are increasingly mimicking traditional financial services through blockchain-based solutions. Despite his skepticism about the need for stablecoins over traditional payments, Dimon still acknowledged their significance by stating, “I think they’re real.”
On the same day, Citigroup revealed its own intentions to explore the stablecoin market. CEO Jane Fraser told analysts the bank is evaluating the issuance of a Citi stablecoin and is already active in tokenized deposits.
Fraser called it a “good opportunity” for the institution, and indicated that digital assets are becoming a strategic priority for major banks. This follows a May 2025 report by The Wall Street Journal that suggested that several top US banks, including JPMorgan, Citigroup, Bank of America, and Wells Fargo, were exploring the creation of a joint stablecoin.
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The push into stablecoins also aligns with the shifting regulatory landscape in the United States. The GENIUS Act, which is a bill designed to regulate stablecoins and their issuers, passed the Senate and is now under review in the House of Representatives. US President Donald Trump voiced his support for the legislation on Tuesday as part of his administration’s broader focus during Congress’s “Crypto Week.”
Advocates see dollar-pegged stablecoins as a tool that could boost the US dollar’s dominance globally. Data from DefiLlama shows the total stablecoin market capitalization currently stands at $257 billion, which is a 58% increase from July of 2024.
Stablecoin market overview (Source: DeFiLlama)
JPMorgan’s deposit coin, which is still in its proof-of-concept phase, will be an institutional payment and settlement solution built on a public blockchain. The bank touts it as an alternative to traditional stablecoins that is designed specifically for cash-based transactions between large financial entities.
