JPMorgan and Citigroup Move into Stablecoins as Banks Eye $258B Market

JPMorgan Chase and Citigroup announced plans to enter the stablecoin market on July 15, 2025, during their second-quarter earnings calls.

JPMorgan CEO Jamie Dimon told analysts the bank will get involved in “both JPMorgan Depositcoin and stablecoins to understand it, to be good at it.” Dimon questioned why someone would choose a stablecoin over regular payment methods but acknowledged that stablecoins are “real” and could offer cheaper, faster cross-border transfers.

The bank already processes $2 billion in daily transactions through JPM Coin, its private blockchain token. JPMorgan recently tested JPMorgan Depositcoin (JPMD) on Ethereum’s Layer 2 network Base.

Citigroup CEO Jane Fraser said her bank is “looking at the issuance of a Citi stablecoin” for digital payments. Fraser described Citigroup as “very active” in tokenized deposits. Citigroup’s stock hit its highest level since 2008 after reporting strong quarterly results and announcing plans to buy back at least $4 billion in shares.

The announcements come as Congress considers new stablecoin rules. The GENIUS Act passed the Senate this month and awaits a House vote during “Crypto Week.” The bill would create oversight for private stablecoin issuers.

Dimon warned that fintech companies are “trying to figure out a way to create bank accounts and get into payment systems.” He mentioned that the fintech firm Dakota already offers dollar payments through stablecoins in over 100 countries.

In May 2025, JPMorgan, Bank of America, Citigroup and Wells Fargo discussed creating a shared stablecoin for cross-border payments. Those talks remain early-stage while individual bank projects advance.

The stablecoin market reached $258 billion in value, up 58% over the past year. Both banks see regulatory clarity as key to expanding their digital asset services.

Dimon, a longtime critic of cryptocurrency, now acknowledges that stablecoins serve practical payment functions. Fraser positioned Citigroup’s stablecoin work as part of a broader digital asset expansion to better serve institutional and corporate clients.