Weekly 10-Q
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Jane Fraser sees a future in tokenized deposits. Coinbase shows why Citi needs stablecoins, too.
Citi is enjoying either side of the digital cash race.
For a financial institution that strikes practically $6 trillion in funds each day, the following funds innovation asks: how do you make it simpler for purchasers to maneuver cash with out making it simpler for them to depart your financial institution?
Citi [C] CEO Jane Fraser sees a solution in tokenized deposits, which let company purchasers use blockchain to switch funds whereas retaining their cash throughout the regulated banking system. Yet Citi’s expanded partnership with Coinbase shows the financial institution isn’t betting on tokenized deposits alone. It’s additionally constructing connections to stablecoins, giving purchasers methods to just accept digital asset funds and transfer between crypto and conventional cash.
Fraser’s desire for deposits isn’t a rejection of blockchain
On Citi’s October 13 earnings name, Fraser emphasised alternative over a cookie-cutter method. “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 mentioned.
Still, she singled out Citi Token Services and deposit tokenization because the areas the place the financial institution sees the best promise.
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