Why Citi believes blockchain is ‘here to stay’ on Wall Street

Core Insights - The crypto industry, initially a response to the financial crisis, has become increasingly integrated with Wall Street, indicating a growing synergy between the two sectors [1] - The rise in Bitcoin's price and the emergence of decentralized financial applications have attracted Wall Street's interest, although early initiatives faced challenges due to regulatory uncertainties [2] - Recent regulatory developments, including the Genius Act, have created a more favorable environment for crypto, suggesting that blockchain technology is likely to remain relevant [3] Company Developments - Citi has been a pioneer in utilizing blockchain technology through its Citi Token Services program, which facilitates 24/7 payments among institutional clients using a private blockchain [4] - The potential for broader applications of blockchain in banking remains uncertain, but some institutions are exploring the tokenization of financial instruments and the issuance of stablecoins [5] - The Securities and Exchange Commission's efforts to establish new regulatory frameworks for crypto are enabling Wall Street to investigate innovative applications, particularly in tokenized stocks [5]