Tokenization and Treasury Innovation Shaped Citi’s Record Third Quarter

Citigroup CEO Jane Fraser’s multiyear effort to rebuild the once-sprawling bank into a leaner, technology-driven institution is beginning to deliver results.

The bank reported its third-quarter 2025 earnings results Tuesday (Oct. 14), sharing that each of Citi’s five core businesses (Services, Markets, Banking, Wealth and U.S. Personal Banking) posted record quarterly revenues.

“Investments in new products, digital assets and AI are driving innovation and improved capabilities across the franchise,” Fraser said in a press release, adding that this has put Citi “in a materially different place in terms of our ability to compete.”

Revenues climbed 9% year over year to $22.1 billion, Citi’s best third-quarter performance in a decade.

“Services posted its best quarter ever with revenues up 7%,” Fraser said. “Despite low volatility, Markets delivered its best third quarter ever with revenues up 15%. Banking revenues were up 34%, and we continue to improve our Investment Banking market share across key sectors. Our Wealth strategy continues to play out positively with record net new investment assets of $18.6 billion for the quarter, and USPB saw a record quarter with revenues up 7%.”

As global commerce accelerates toward automation, instant payments and tokenized finance, Citi is repositioning its Treasury and Trade Solutions (TTS) segment, historically its backbone business for global cash management, as a platform at the intersection of corporate banking and next-generation financial technology.

Read also: Citi CEO Says Token Services Are ‘Superior Platform’ for Digital Assets

Over the past two years, TTS has emerged as a focal point for the bank’s digital asset strategy, integrating blockchain, tokenization and programmable money capabilities directly into institutional treasury operations. The company’s Q3 2025 data showed the strategy beginning to translate into measurable financial strength and expanded digital capability.

In 2025, Citi launched several initiatives through its Digital Assets Group that extend TTS’s functionality into distributed ledger environments. One of the most visible is Citi Token Services, which uses blockchain technology to facilitate instantaneous cross-border payments and liquidity transfers between Citi branches and client treasuries.

The system replaces traditional correspondent banking steps, which can take hours or days, with programmable digital tokens representing deposits held at Citi. The tokens move across Citi’s private blockchain, enabling 24/7 liquidity management for multinational corporates.

Operational metrics underscore the scale. Cross-border transaction value rose 10%, U.S.-dollar clearing volume increased 5%, and assets under custody and administration reached $30 trillion, up 13% year on year. Deposit balances within Services grew 8% to $893 billion, reinforcing Citi’s position as a leading liquidity manager for multinationals.

During the third quarter, the bank also expanded Citi Token Services beyond pilot mode, introducing new use cases in cash concentration and automated trade settlement. The service has now been deployed for institutional clients across the U.S. and Europe, positioning Citi as one of the first major global banks to apply blockchain at production scale within its own balance sheet operations.

See also: Citi Plans Crypto Custody Service Launch for 2026

During the third quarter, Citi expanded its API connectivity and instant payment corridors across key markets, enabling clients to automate cash positioning and trade flows directly from their own treasury systems. Cross-border transaction growth reflects that integration. Corporate clients increasingly access Citi’s network programmatically rather than through manual channels.

Beyond payments, Citi is extending tokenization into its Securities Services business, which administers more than $30 trillion in client assets. The bank has begun adapting that infrastructure for tokenized bonds, funds and trade receivables, offering custody and settlement within the same regulatory perimeter as traditional securities.

The focus on institutional, balance-sheet-backed tokenization distinguishes Citi from peers pursuing retail cryptocurrency initiatives. The goal is to use distributed-ledger technology to enhance the speed, transparency and resiliency of existing financial plumbing.

Custody of crypto assets “is fast becoming one of the defining battlegrounds in the broader institutionalization of digital finance,” PYMNTS wrote Oct. 1 in the wake of a letter from the Securities and Exchange Commission.

Digitalization is reinforcing Citi’s competitive moat. Once a client integrates its treasury operations via Citi’s APIs or token platform, the bank effectively becomes an embedded counterparty for daily liquidity management. Each incremental digital connection deepens relationships and drives recurring fee revenue without significant capital consumption.

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