Citigroup Favors Tokenized Deposits Over Stablecoins for Future Payments

Citigroup is shifting away from stablecoins in favor of tokenized deposits for future payment infrastructure, citing compliance and efficiency advantages. This strategic pivot reflects the growing demand for low-cost, compliant payment solutions by institutional clients. CEO Jane Fraser highlighted the seamless, multi-bank interoperable payments offered by tokenized deposits during a recent earnings call. The move is supported by regulatory changes that ease burdens associated with stablecoins and enable banks to better facilitate anti-money laundering and tax reporting.