Two of the biggest names on Wall Street are seemingly about to enter the stablecoin market based on comments made by their senior executives.
Citigroup CEO Jane Fraser told analysts in a post-earnings conference call that the bank was looking to issue its own stablecoin as well as providing custody for tokenised deposits.
“We are looking at the issuance of a Citi stablecoin, but probably most importantly is the tokenized deposit space, where we’re very active,” said Fraser.
Meanwhile JP Morgan chief Jamie Dimon told analysts that the bank planned to be more involved in stablecoin, albeit somewhat reluctantly.
“We’re going to be involved in both JPMorgan deposit coin and stablecoins to understand it, to be good at it,” Dimon said in a quarterly earnings call.
“I don't know why you'd want a stablecoin as opposed to just payment,” he said, adding that fintech companies "are trying to figure out a way to create bank accounts and get the payment systems and rewards programs, and we have to be cognizant of that. The way to be cognizant is to be involved."
Should these moves come to fruition, they would represent a change in sentiment - from an initial reticence towards the DeFi sector to a wish to be more involved, albeit with some caution.
The statements also come ahead of a major regulatory development in the US in the form of the GENIUS Act, which is designed to set out a regulatory framework for the stablecoin market.
The Act is set to be voted on in the House of Representatives as part of so-called 'crypto week', although it is unclear as to whether the Trump regime's wish to hurriedly pass a number of crypto-related laws will be subject to revolts and challenges.