Citigroup CEO Jane Fraser has expressed a preference for tokenized deposits over stablecoins as the future of payments and financial infrastructure. During an investor call, Fraser highlighted the demand from institutional clients for seamless, real-time, low-cost, and compliant cross-border transactions. Citi's tokenized services, now linked with over 250 banks across more than 40 markets, facilitate instant fund transfers. Fraser noted that while Citi will continue to support stablecoins, they face operational and regulatory challenges, including AML and tax reporting. In contrast, tokenized deposits bypass these issues and are poised to address many current industry problems. She also foresees tokenization extending beyond payments to asset settlements, such as oil and equities, within a regulated framework.