Core Insights - Citigroup Inc. has entered the stablecoin market by investing in U.K.-based BVNK, anticipating a potential $1.9 trillion market for tokenized dollars [1][2] - The investment was made through Citi Ventures, with BVNK processing over $20 billion in annual transactions for notable clients [2] - The GENIUS Act, effective since July, allows U.S. banks to issue and manage payment stablecoins under Treasury oversight, prompting banks like Citi to accelerate their involvement in the regulated stablecoin sector [3][6] Company Developments - Citi's strategy reflects a shift from speculative crypto trading to practical applications of dollar tokenization, with plans for a Citi-branded stablecoin aimed at enhancing global settlement and digital custody services [4] - The in-house research division of Citi has raised its 2030 forecast for stablecoin issuance to $1.9 trillion, indicating significant potential for institutional adoption [5] - Competitors like JPMorgan and Goldman Sachs are also advancing in the stablecoin space, with JPMorgan's JPM Coin facilitating billions in daily transfers and Goldman developing tokenized cash settlement tools [5][6] Regulatory Environment - The GENIUS Act is considered a pivotal U.S. financial law for digital assets, formalizing the issuance, backing, and supervision of stablecoins by insured depository institutions [6][7] - The Treasury Department is currently in a public consultation phase to establish implementation guidelines, which could integrate stablecoins into the U.S. payments system by 2026 [7]