PANews reported on October 15th that according to CoinDesk, Citigroup CEO Jane Fraser explicitly stated that tokenized deposits, not stablecoins, will be the primary driver of the next generation of payments and financial market infrastructure. During the Q3 earnings call with investors, she stated that institutional clients are seeking low-cost, compliant, and seamless real-time cross-border funds flows, and that tokenized deposits are the best way to achieve secure, reliable, multi-bank interoperable, and always-on payment solutions.

Citi has invested heavily in digital asset infrastructure, and its tokenization services connect over 250 banks in over 40 markets, enabling instant transfers. However, Fraser noted that a barrier to widespread adoption lies in the difficulty corporate finance departments face in adapting to a 24/7 financial environment. Citi will continue to support stablecoins, but they carry compliance burdens such as anti-money laundering and tax reporting, which tokenized deposits can circumvent. She also cautioned against excessive speculation in stablecoins, stating that most issues can be resolved through tokenized deposits. She noted that in the future, tokenized applications will extend far beyond payments, with all types of asset issuance and settlements expected to be tokenized. Furthermore, regulators are promoting responsible innovation, which Citi will incorporate into its toolkit.