Citigroup has joined a group of nine large European banks planning a euro-denominated stablecoin, with the project based in the Netherlands and governed by the EU Markets in Crypto-Assets regulation (MiCA). The initiative targets corporate treasurers, cross-border transfers, and competition among digital liquidity venues. Bloomberg reports that the step widens bank exposure to digital assets and seeks to cut dollar reliance in the stablecoin market.
The coalition will place its operating head office in the Netherlands and has not yet named a chief executive, aligning operations with MiCA as the rulebook that participants treat as a foundation for product stability.
The European Central Bank defines stablecoins as digital units of value using stabilization tools to maintain parity with official currencies or other assets, and MiCA demands higher reserves and oversight that can lift user trust while adding compliance expense.
Citigroup is also studying its own stablecoin alongside tokenized deposits, reserve management for stablecoins, and custody for crypto assets, with CEO Jane Fraser listing these as parts of a full payment and custody plan; Citigroup also holds stakes in stablecoin infrastructure, including its share in BVNK, showing interest in links between traditional banking and blockchain.
Use cases, market impact and parallel initiatives
The project may accelerate institutional use of tokenized euros and shift liquidity in cross-border transfers, while keeping banks at the center as issuers as well as custodians.
Citigroup is engaged in parallel U.S. discussions with JPMorgan, Bank of America, and Wells Fargo on a similar interbank plan, as Congress weighs the GENIUS Act, a bill that would set reserve and supervisory rules for stablecoin issuers.
Citigroup projects the stablecoin sector could reach about USD 1.6 trillion by 2030, up from roughly USD 240 billion today.
The European group still needs to hire a CEO and finish operational design under MiCA, while Citigroup continues investing in custody and reserve tools so tokenized euros can plug into its payment platform, with potential to speed institutional adoption and lower reliance on dollar-based stablecoins in cross-border transfers.
