Citigroup is studying nursery and payment services for Stablecoins

Written by Tatiana Butzer and Hana Lang

New York (Reuters) -citigroup (CA senior Reuters executive, on another mark in Washington, stimulates major financial companies to expand the coded currency business, that exploration of the provision of Stablecoin and other services.

The American Bank is among a handful of traditional institutions, including Fiserv and Bank of America, taking into account the payment to Stablecoins after Congress approved a law that paves the way for encrypted symbols to be widely used in payments, settlement and other services. Stablecoins are encrypted currencies associated with the currency of Fiat or other origins, usually the US dollar.

This law requires Stablecoin exporters with safe assets such as US Treasury bonds or money to support digital currencies, which creates opportunities for traditional nursery banks to save and manage assets.

“Providing nursery services for these high -quality assets that support Stablecoins is the first option we are looking for,” said Bizarop Chattage, the global head of partnerships and innovation in the City Group Services Department. Citi’s Services, which includes the treasury, criticism management, payments, and other services for large companies, is still a basic bank unit, which was subject to a great restructuring.

A study of MCKINSEY has been released about $ 250 billion in Stablecoins so far, but it is mainly used to settle encrypted currency deals. While Citigroup said last month that she was considering its Stablecoin version, the bank has not previously discussed the wider digital assets plans.

CITI also explores nursery services for digital assets that belong to encryption investment products. For example, many asset managers ETFS launched the immediate price of Bitcoin because the Securities and Exchange Committee authorized these products last year.

The largest bitcoin etf, ISHARES Bitcoin Trust, Black Rock, has about $ 90 billion in market value. “There must be a nursery for the equivalent amount of the digital currency to support these investigative boxes,” said Chatge.

Currently, Crypto Excination Coinbase dominates this work. In a statement, a Coinbase spokesman said the company is working as a guard for more than 80 % of the investment funds traded in Crypto.

Citi also explores the use of Stablecoins to accelerate payments, which usually takes several days or more.

Currently, Citi offers “symbolic” payments from the US dollar using Blockchain network to transfer dollars between accounts in New York, London and Hong Kong 24 hours a day. Chatterje added that it is developing services to allow customers to send Stablecoins between accounts or convert them to dollars for immediate payments, and talks to customers about the cases of use.

Once he is warned against allowing traditional financial companies to expand the encryption sector often, the organizers of banking and securities during the era of US President Donald Trump’s administration are taking a more relaxed position in this sector.

However, City and other companies will have to comply with the current regulations, including money laundering and currency controls in some countries of international transfers. Chattji said that coding assets need to ensure the use of these assets, before obtaining them, for legal purposes, as well as enhancing cybersecurity and operational security in order to maintain safety and prevent theft. CATALCOIN added that the bank is under consideration.

(Participated in the coverage, Tatiana Botzer, Hana Lang, edited by Lanan Ngwin, Michel Price, Rod Nickel)