This article first appeared on GuruFocus.
Citigroup (NYSE:C) is quietly making one of its biggest digital bets yetjoining a consortium of nine European lenders, including ING Groep, UniCredit, and DekaBank, to launch a regulated euro-based stablecoin. The group has already set up a new Netherlands-based entity to run the project, targeting a token debut in the second half of 2026. For Citigroup, the move could mark a turning point: it’s the only non-European bank in the alliance, positioning itself at the center of Europe’s effort to build an alternative to the dollar-led stablecoin market. The banks say their shared goal is to boost Europe’s strategic autonomy in payments by creating a credible, homegrown digital euro system.
Behind this partnership lies a bigger storyone about how fast digital money is moving into the mainstream. Stablecoins, which are designed to hold steady against fiat currencies, could handle over $50 trillion in payments by 2030, according to Bloomberg Intelligence. That would mean as much as a quarter of consumer transactions could flow through blockchain rails, up from almost nothing today. The market, still dominated by dollar-tied tokens, leaves plenty of room for growth in euro-based coins, which currently make up just around $477 million of the $300 billion total supply.
Citigroup’s blockchain ambitions are expanding on several fronts. Earlier this week, its venture arm backed BVNK, a stablecoin infrastructure firm, while the bank itself joined Goldman Sachs and Bank of America in exploring digital-money systems for institutional payments. CEO Jane Fraser recently confirmed the bank is considering its own stablecoin, signaling a deeper commitment to the space. Citigroup shares slipped about 1% to $94.75 on Friday, marking a fourth straight decline, though the stock remains up roughly 35% this yeara reminder that Wall Street’s digital experiments are now very much part of the financial mainstream.