The arms race of stablecoins among banking giants escalates! Citigroup confirms issuance plan, and JPMorgan is forced to get on board.

Citibank's Major Get on Board: Stablecoin + Tokenization Deposit Dual-Track Strategy Citigroup CEO Jane Fraser stated clearly in the latest announcement: ✅ Developing the "Citi stablecoin" (Citi stablecoin) ✅ Key focus on tokenization deposit business (Tokenized Deposit) ✅ Provide reserve management and cryptocurrency custody for third-party stablecoins This move confirms the bank's April research report prediction - that by 2030, the stablecoin market size will soar to 3.7 trillion USD. It is worth noting that Citigroup's stock price recently hit a new high since 2008, providing ample capital support for crypto expansion.

JPMorgan's Contradictory Choice: Forced to Participate Amid Doubts Despite CEO Jamie Dimon's public questioning of the necessity of stablecoins: "I don't understand why we don't use traditional payment systems," competitive pressure has forced JPMorgan to take action: ⛓️ Promote the development of the "Morgan Deposit Token" and stablecoin simultaneously. ⛓️ Frankly "competitors are entering the payment and reward system through stablecoins" ⛓️ Emphasize "must get on board to maintain cognitive advantage" This deviates from the "Morgan stablecoin plan" reported by foreign media in June, indicating the internal struggles of traditional banks when implementing strategies.

May Alliance Plan: The Collective Awakening of Banking Giants This action has long been anticipated: In May of this year, several investment banks, including Citigroup and Morgan, discussed joint issuance of stablecoins. Fraser's separate announcement suggests that the two giants may turn to a path of independent development. Industry analysts point out that the core advantage of bank-issued stablecoins lies in: 🔹 Compliance migration of existing financial licenses 🔹 Rapid conversion of a user base in the billions 🔹 The natural trust endorsement of fiat collateral assets

Tokenization of deposits: an undervalued killer application The tokenization of deposits, which Fraser particularly emphasizes, is indeed the key to the transformation of traditional banking: 💡 Transform bank deposit certificates into on-chain programmable assets 💡 Achieve real-time clearing, cross-border payments, and DeFi protocol access 💡 JPMorgan has taken the lead in testing euro deposit tokenization in June. This technology meets regulatory requirements while also building a crypto ecological interface, becoming a "safe springboard" for banks to test the waters of Web3.

Industry Restructuring under the Arms Race The actions of the two giants will trigger a chain reaction: 🚀 Banks like Bank of America and Wells Fargo may accelerate getting on board. 🚀 The market share of compliant stablecoins is shifting towards traditional institutions. 🚀 USDC and USDT face the impact of bank-related tokens As Dimon said: "When all competitors rush in, waiting becomes the biggest risk." 2024 may become the year of institutional stablecoin explosion.