JPMorgan and Citi Explore Stablecoins as Digital Payments Grow In Popularity

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Two of the world’s largest banks are stepping further into the stablecoin world. JPMorgan and Citigroup are both exploring how these digital assets could become part of mainstream finance, and this time, it is more than just talk.

On recent earnings calls, JPMorgan CEO Jamie Dimon and Citigroup CEO Jane Fraser confirmed that their institutions are actively developing or evaluating stablecoin projects.

Dimon Steps Off the Sidelines

Jamie Dimon has been skeptical of stablecoins for years. He has often questioned why anyone would choose them over standard bank transfers or payment apps. Now, that position is starting to change. JPMorgan already has an internal deposit token called JPMD, which runs on its Base blockchain and is used for select institutional transactions. Now, the bank plans to begin testing external stablecoins as well.

Jane Fraser, Citi $C Q2 2025 earnings call: “We are looking at the issuance of a Citi stablecoin” pic.twitter.com/RfFUIG9mVp

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Dimon said the move is about staying ahead. Fintech competitors are building digital payment tools that offer faster settlement and global reach. JPMorgan is not waiting around to see how it all plays out. It wants to be involved early enough to understand what works and what doesn’t.

Citigroup Explores Its Own Stablecoin

Jane Fraser is taking a similar approach. While Citigroup has so far focused on tokenized deposits, Fraser confirmed that the bank is looking into launching a Citi-branded stablecoin. The project is still in its early stages, but the idea is gaining traction internally.

Citi analysts believe the stablecoin market could be worth over three trillion dollars by the end of the decade. That forecast has added urgency to Fraser’s push to explore digital payment rails and new ways of offering liquidity.

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Why It Matters

These aren’t just tech experiments. Banks have been wary of stablecoins for years, mainly because of unclear regulations and concerns over compliance. Now, with legislative efforts picking up in Washington, including the proposed GENIUS Act, the environment is starting to change.

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Dimon made it clear that regulation is still a major factor. Without strong legal guardrails, large banks are unlikely to move beyond pilots. But having a plan in place gives them the option to move quickly once the path becomes clearer.

Fraser linked Citi’s work on digital assets to a wider effort that includes custody services and digital reserve management. For both banks, this is about preparing for a future where money moves differently.

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Other Banks Are Getting Involved

JPMorgan and Citi are not the only ones paying attention. Earlier this year, banks including Bank of America and Wells Fargo joined discussions about a possible joint stablecoin project. That initiative is still in the idea phase, but it shows that interest is growing across the board.

What Comes Next

Both banks are likely to continue testing quietly while monitoring the regulatory front. JPMorgan may begin integrating select third-party stablecoins in small use cases, while Citigroup might focus on building internal infrastructure to support a future launch.

Stablecoins are no longer something the big banks are ignoring. With real money flowing into the space and fintechs moving fast, traditional finance is starting to make its move. Whether these projects reach consumers soon or remain behind the scenes, it is clear that the stablecoin conversation has reached a new level.

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Key Takeaways

JPMorgan and Citigroup are actively exploring stablecoins, moving beyond research and into early development and testing phases.

Jamie Dimon confirmed JPMorgan will begin testing external stablecoins, a change from his previous skepticism.

Citigroup is evaluating a Citi-branded stablecoin, with internal momentum building around future digital payment infrastructure.

Both banks are preparing for a regulated future, keeping pace with fintechs and global stablecoin trends while awaiting clearer rules.

Other major banks, including Bank of America and Wells Fargo, are also exploring joint stablecoin initiatives, signaling wider industry interest.

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