Weekly 10-Q
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Jane Fraser sees a future in tokenized deposits. Coinbase shows why Citi needs stablecoins, too.
Citi is playing both sides of the digital money race.
For a bank that moves nearly $6 trillion in payments daily, the next payments innovation asks: how do you make it easier for clients to move money without making it easier for them to leave your bank?
Citi [C] CEO Jane Fraser sees an answer in tokenized deposits, which let corporate clients use blockchain to transfer funds while keeping their money within the regulated banking system. Yet Citi’s expanded partnership with Coinbase shows the bank isn’t betting on tokenized deposits alone. It’s also building connections to stablecoins, giving clients ways to accept digital asset payments and move between crypto and traditional money.
Fraser’s preference for deposits isn’t a rejection of blockchain
On Citi’s October 13 earnings call, Fraser emphasized choice over a cookie-cutter approach. “Our idea is, let’s give the clients a choice between all the different platforms and capabilities. Then they can choose which is the best for their particular need. There’s not a one-size-fits-all here,” she said.
Still, she singled out Citi Token Services and deposit tokenization as the areas where the bank sees the greatest promise.
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