The recent law passed by the US Congress has opened up possibilities for crypto payments, prompting Citigroup to explore custody and payment services for stablecoins.
Custody banks are now positioned to secure and manage assets, as the legislation mandates stablecoin issuers to hold safe assets like US Treasuries or cash to back these digital tokens. Other major financial institutions, including Fiserv and Bank of America, are also looking to expand their cryptocurrency services in response to this new law.
Currently, Citi offers users the ability to convert stablecoins into dollars for instant payments or transfer them between accounts, as well as access tokenized US dollars that can be utilized on a blockchain internationally.
Biswarup Chatterjee, global head of partnerships and innovation at Citigroup, shared with Reuters that the bank is undergoing a significant restructuring. They are considering launching crypto ETFs and exploring how stablecoins can enhance payment innovations, with plans to issue their own stablecoin.
Research from Citi indicates that stablecoins could potentially grow to $3.7 trillion by 2030.