Citigroup, a major U.S. banking institution, is actively exploring the potential of digital assets, particularly stablecoins, as a new revenue stream and to streamline financial transactions for its clients. The bank is currently evaluating how to provide custody solutions for high-value collateral backing stablecoins, which could include U.S. government bonds and cash equivalents. 5 This move aligns with newly enacted regulations that allow banks to issue their own stablecoins directly as long as they are backed by risk-free assets such as Treasury securities or cash. Citigroup’s existing services arm already manages extensive financial operations for many of the world’s largest corporations, so integrating stablecoin custody would bolster its role in safeguarding client assets and complying with regulatory requirements.