Citigroup CEO Jane Fraser recently said her company is exploring the Stablecoin sector and may launch its own token. The bank’s Titan is also exploring other silly, ridiculous solutions and preliminary controls.
The bank’s own researchers are very bullish about the outlook for stubcoin, but that’s not the big picture. JPMorgan has been in the race despite CEO Jamie Dimon’s reservations, showing overwhelming pressure to enter this market.
More bank giants are challenging stubcoin
The Stablecoin market has recently seen a surge in multiple blockchain activity, and high expectations from impending new laws.
In late May, several major investment banks explored the launch of joint stubcoin, but Citigroup is currently planning to enter the market sector itself.
“We are considering issuing Citi Stabrecoin, but perhaps most importantly, the tokenized deposition space where we are very active, which is a good opportunity for us,” claimed Jane Fraser, CEO of Citigroup.
This development makes sense as researchers from Citigroup predicted that the stubcoin market would reach $3.7 trillion by 2030.
Also, well-known Tradfi institutions are considering stable preparation management and provide custody solutions for crypto assets.
Additionally, Citigroup stock recently reached its highest rating since 2008, making it a ripe moment for a new expansion. Still, it does not fully explain the bank’s recent commitment to the stubcoin sector.
Fraser’s comments about tokenized sediments may represent important insights. Tokenized sediments are a step in the right direction, but they continue.
JPMorgan, one of the other major banks in the aforementioned joint stubcoin proposal, also began with these assets.
In June there were persistent rumors that JPMorgan would fire a Stablecoin, but this was a bit garbled. Instead, the banks only planned deposit-based tokens. Nevertheless, CEO Jamie Dimon is reluctantly joining the sector a month later.
“We’re going to be involved in getting it to understand it in both JP Morgan Sediment Coins and Stubcoins. I don’t know why (but our competitor) wants to go into the payment and rewards program, not just payment, but also pay, revenue calls.
In fact, JPMorgan recently predicted that Stablecoins could fall below Citigroup bullish expectations. Nevertheless, the power of the market forces banks to explore the industry.
In other words, Citigroup is already optimistic about Stubcoin, but this optimism is not the big picture. Tradfi’s institutions rely on the industry, but it is not paid to become a fugitive.
If both Citigroup and JPMorgan are making strong commitments now, they can attract the attention of several other major companies.
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