interview<\/a> with South China Morning Post. The executive called stablecoins a \u201cglobal phenomenon,\u201d especially with recent developments in the United States and Hong Kong\u2019s own Stablecoin Ordinance bill that is scheduled to come into effect on August 1.<\/p>\n\u201cWe welcome regulators providing us guidance and insight on the stablecoin landscape, allowing us to continue developing new services that help our clients run their businesses every day,\u201d said Khaliq.<\/p>\n
How far do you think banks are willing to go to embrace stablecoins?<\/p>\n
<\/p>\n
Citigroup\u2019s future plans involving stablecoins<\/h2>\n
Earlier this year, the banking group expressed interest in offering technology-based services and the issuance of what they called a \u201cCiti stablecoin.\u201d Recently, it has also stated that its plans to help clients navigate reserve management as stablecoins require backing its value in reserves.<\/p>\n
It would also offer services that could convert stablecoins into fiat currencies and vice versa.<\/p>\n
\u201cConsumers and companies will have multiple payment options, and ultimately, the adoption of stablecoins will depend on factors like cost and ease of access,\u201d he said, adding that banks are able to provide the bridge between stablecoins and fiat.<\/p>\n
Although the bank is undoubtedly curious about stablecoins and how they will be able to make use of them, it is also taking a cautious stance as it observes the need for \u201cclear accounting rules regarding stablecoins and their impact on balance sheets and liquidity\u201d according to Khaliq.<\/p>\n
He believes that there is still a long way to go before true regulatory clarity can be achieved in terms of stablecoins, stating that it is still \u201cvery early\u201d in its development.<\/p>\n
Back in April 2025, Citigroup\u2019s latest report showed that stablecoin issuers are poised to become some of the largest holders of U.S. Treasuries by 2030 if the U.S. adopts a regulatory framework. Now that it has, only time will tell if it will reach the predicted $1 trillion surge in additional demand for U.S. Treasuries.<\/p>\n
<\/p>\n
The stablecoin regulatory wave<\/h2>\n
Most recently, the Trump Administration passed the Guiding and Establishing National Innovation for U.S. Stablecoins Act or GENIUS Act. It received majority vote from the House of Representatives on July 18. The bill is aimed at providing the first federal framework for stablecoins.<\/p>\n
Hong Kong is next in line. The special administrative region recently passed the Stablecoin Ordinance, which mandates companies to register for a stablecoin issuance license in order to offer services and issue stablecoins pegged to the Hong Kong dollar. It is scheduled to come into effect on August 1. <\/p>\n
Even China has begun to mull over softening its stance on digital assets as more and more countries are competing to issue their own stablecoins linked to local currencies, in an attempt to overthrow USD-pegged stablecoin dominance. <\/p>\n
<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"
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