Citigroup Inc., a diversified financial service holding company, provides various financial product and services to consumers, corporations, governments, and institutions worldwide. It operates through five segments: Services, Markets, Banking, U.S. Personal Banking, and Wealth. The Services segment includes Treasury and Trade Solutions, which provides cash management, trade, and working capital solutions to multinational corporations, financial institutions, and public sector organizations; and Securities Services, such as cross-border support for clients, local market expertise, post-trade technologies, data solutions, and various securities services solutions. The Markets segment offers sales and trading services for equities, foreign exchange, rates, spread products, and commodities to corporate, institutional, and public sector clients; and market-making services, including asset classes, risk management solutions, financing, prime brokerage, research, securities clearing, and settlement. The banking segment includes investment banking; advisory services related to mergers and acquisitions, divestitures, restructurings, and corporate defense activities; and corporate lending, which includes corporate and commercial banking. The U.S. Personal Banking segment provides co-branded cards and retail banking services. The Wealth segment provides financial services to high-net-worth clients through banking, lending, mortgages, investment, custody, and trust product offerings; and to professional industries, including law firms, consulting groups, accounting, and asset management. The company was founded in 1812 and is headquartered in New York, New York.

Citigroup выглядит как крупный и устойчивый банк с сильной базой активов и капитала, но с заметно более слабой рентабельностью, чем хотелось бы видеть для премиальной оценки. Выручка, чистая прибыль и операционная прибыль в TTM выросли, а активы и собственный капитал остаются очень крупными и в целом стабильными, что поддерживает инвестиционный профиль. При этом ROE, ROA, ROI и return on tangible equity находятся ниже отраслевых ориентиров, а их уровень по годам хоть и улучшается, но пока не выглядит достаточным для агрессивной переоценки. Маржа чистой прибыли и операционная маржа также ниже медианы сектора, что говорит о том, что эффективность монетизации выручки пока ограничена. С точки зрения оценки, P/B и P/S выглядят относительно низкими к отрасли, что частично компенсирует слабую доходность капитала и намекает на умеренную недооценённость. Однако P/E выше медианы, а это означает, что рынок уже закладывает определённые ожидания по прибыли, поэтому пространство для дальнейшего апсайда ограничено. Долговая нагрузка по debt/equity заметно выше отраслевой медианы, а long-term debt остаётся существенным, что добавляет осторожности к мультипликаторной оценке. Ликвидность по current ratio приемлемая, но quick ratio формально нулевая, что для банка не является прямым красным флагом, однако не добавляет баллов к консервативной оценке. Дивидендная доходность снизилась по сравнению с предыдущими периодами, поэтому дивидендный фактор сейчас поддерживает акцию слабее, чем раньше. В целом фундаментал указывает на качественный, но не выдающийся профиль: сильный баланс и рост прибыли сочетаются с более низкой, чем у конкурентов, операционной эффективностью. Для инвестора это означает скорее умеренно позитивную, но осторожную картину без оснований для сильного повышения целевой цены. Оценка выглядит близкой к справедливой, а корректировка должна быть небольшой и консервативной, учитывая смешанный баланс сильных и слабых сторон.

Citigroup, Inc.

Сильный баланс и рост прибыли поддерживают Citigroup, но слабая рентабельность, высокий leverage и неидеальные маржи ограничивают потенциал переоценки.

Key Points
Data center CPUs will be the next AI market to boom.
Chip stock investors have multiple ways to win.
Semiconductor stocks jumped on Friday, as more Wall Street analysts highlighted the staggering growth potential of the AI infrastructure industry.
Here's how some of the top chip stocks performed:
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
The agentic AI era approaches
Analysts at Bank of America expect the global server central processing unit (CPU) market to grow almost fivefold to over $170 billion by 2030, driven by a forthcoming boom in agentic AI applications.
While AI model training largely relies on graphics processing units (GPUs) designed by the likes of Nvidia, CPUs perform well during certain segments of AI agent workflows, such as control logic, plan execution, coordination, and scheduling.
Intel and AMD dominate the server CPU market, making them well-positioned to profit from this global megatrend. Yet Arm also stands to benefit. The chip architecture developer recently unveiled its new AGI CPU, which is specifically designed to power next-gen AI infrastructure.
More ways for investors to profit
Bank of America's analysts are also optimistic about Intel's foundry business. In addition to designing and building its own chips, Intel has opened its chip manufacturing services to other tech giants. Intel is reportedly in discussions with Apple to potentially make some of the chips in its popular devices.
Meanwhile, analysts at Citigroup believe AMD could wrestle away some market share from Nvidia in the GPU arena, driven in part by its chip supply deals with social media and AI powerhouse Meta Platforms.
Should you buy stock in Advanced Micro Devices right now?
Before you buy stock in Advanced Micro Devices, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Advanced Micro Devices wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $438,283!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,257,427!*
Now, it’s worth noting Stock Advisor’s total average return is 938% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of June 12, 2026.
Bank of America is an advertising partner of Motley Fool Money. Citigroup is an advertising partner of Motley Fool Money. Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Intel, Meta Platforms, and Nvidia. The Motley Fool recommends Arm Holdings. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why Intel, AMD, Arm, and Other Artificial Intelligence (AI) Stocks Popped Today

Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Lennar Corp (Symbol: LEN), where a total of 14,864 contracts have traded so far, representing approximately 1.5 million underlying shares. That amounts to about 56.6% of LEN's average daily trading volume over the past month of 2.6 million shares. Particularly high volume was seen for the $90 strike put option expiring June 12, 2026, with 3,567 contracts trading so far today, representing approximately 356,700 underlying shares of LEN. Below is a chart showing LEN's trailing twelve month trading history, with the $90 strike highlighted in orange:
Citigroup Inc (Symbol: C) saw options trading volume of 56,742 contracts, representing approximately 5.7 million underlying shares or approximately 52.8% of C's average daily trading volume over the past month, of 10.7 million shares. Particularly high volume was seen for the $110 strike put option expiring July 02, 2026, with 8,780 contracts trading so far today, representing approximately 878,000 underlying shares of C. Below is a chart showing C's trailing twelve month trading history, with the $110 strike highlighted in orange:
And UnitedHealth Group Inc (Symbol: UNH) options are showing a volume of 35,022 contracts thus far today. That number of contracts represents approximately 3.5 million underlying shares, working out to a sizeable 50% of UNH's average daily trading volume over the past month, of 7.0 million shares. Particularly high volume was seen for the $410 strike call option expiring June 12, 2026, with 2,397 contracts trading so far today, representing approximately 239,700 underlying shares of UNH. Below is a chart showing UNH's trailing twelve month trading history, with the $410 strike highlighted in orange:
For the various different available expirations for LEN options, C options, or UNH options, visit StockOptionsChannel.com.
Further LEN Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Notable Friday Option Activity: LEN, C, UNH

In a notable move within the evolving digital assets space, Citigroup Inc. C has launched Digital Depositary Receipts (DDRs) on private company shares. This creates a new avenue for issuers and investors to participate in private markets.
The new structure is designed to simplify private market investing by bringing issuance, custody and settlement under a single platform. By serving as both issuer and custodian of the tokenized depositary receipts, C aims to reduce the complexity and costs that are often associated with traditional private market transactions.
The company also completed the first transaction on the platform involving Kaleido and investors from its Wealth business. The transaction highlights its efforts to expand private market access while leveraging its wealth management, custody and securities services franchises.
Details of C’s Digital Depositary Receipts Platform
The company's DDRs are tokenized instruments that provide investors with exposure to private company shares through a familiar depositary receipt structure.
The offering is designed to help private companies raise capital and provide liquidity opportunities for existing shareholders without pursuing a public listing. At the same time, companies retain control over ownership rights and shareholder records. The structure also provides an institutional-grade alternative to traditional private market arrangements.
Built on C's established Depositary Receipts and Custody businesses, the platform uses blockchain infrastructure operated by SIX to issue, settle and safeguard tokenized securities while reducing reliance on multiple intermediaries and special-purpose vehicles commonly used in private market transactions.
For wealth clients, the product is integrated into C's existing wealth platforms, allowing access to private company investments through a familiar investment structure while maintaining institutional safeguards and compliance standards.
Rationale Behind C’s Latest Tokenized DDR Launch
The launch reflects growing structural changes in global capital markets, particularly the prolonged timeline for Initial Public Offerings (IPOs) and increasing demand for private market liquidity solutions.
Employees and early investors in private companies often have limited options to sell their holdings and access liquidity, forcing them to rely on fragmented secondary markets. Citigroup's DDRs address this gap by offering a more standardized, scalable and regulated framework for accessing private markets.
The model also simplifies capital formation and investor distribution without requiring a public listing, allowing companies to raise capital while maintaining control over ownership and governance structures.
The latest launch builds on C's broader efforts to expand its digital asset and tokenization capabilities. In 2025, the company partnered with SDX to develop a platform for tokenizing and distributing pre-IPO equities on regulated digital market infrastructure, further expanding its presence in private market tokenization. In 2024, it introduced the Citi Integrated Digital Assets Platform, which supports the issuance, custody and management of tokenized financial instruments.
These initiatives, along with the launch of DDRs, reinforce Citigroup's position in the evolving private markets ecosystem while supporting fee-based revenue growth across custody, issuance, settlement and wealth management services.
C’s Price Performance & Zacks Rank
Over the past six months, shares of Citigroup have gained 22.4% compared with the industry’s growth of 1.4%.
Image Source: Zacks Investment Research
Citigroup currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Firms’ Efforts to Expand Digital Asset Initiatives
Major financial firms, including Franklin Resources, Inc. BEN and State Street Corporation STT, have also been advancing their digital asset capabilities.
Last week, Franklin Templeton, the asset management arm of Franklin Resources, partnered with MoonPay to expand the distribution of its tokenized money market funds. The partnership integrates Franklin Templeton's Benji platform with MoonPay's trading infrastructure, allowing eligible institutions to move between stablecoins and tokenized fund products more efficiently while broadening access to digital investment solutions.
In January 2026, State Street launched its Digital Asset Platform, a secure infrastructure designed to support tokenized assets, tokenized money market funds, exchange-traded funds, tokenized deposits and stablecoins. The platform provides wallet management, custody and cash capabilities, enabling institutional clients to access digital asset services through an integrated and compliant framework.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Citigroup Deepens Private Markets Push With Tokenized DDR Launch

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Financial Select Sector SPDR Fund (Symbol: XLF) where we have detected an approximate $222.0 million dollar outflow -- that's a 0.4% decrease week over week (from 957,695,427 to 953,445,427). Among the largest underlying components of XLF, in trading today Morgan Stanley (Symbol: MS) is up about 1%, Wells Fargo & Co (Symbol: WFC) is off about 0.8%, and Citigroup Inc (Symbol: C) is higher by about 1%. For a complete list of holdings, visit the XLF Holdings page » The chart below shows the one year price performance of XLF, versus its 200 day moving average:
Looking at the chart above, XLF's low point in its 52 week range is $47.67 per share, with $56.515 as the 52 week high point — that compares with a last trade of $52.16. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Further XLF Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

XLF, MS, WFC, C: ETF Outflow Alert

Bank of America’s BAC planned launch of a cross-border real-time payments solution next quarter is expected to support fee revenues over time by giving corporate and commercial clients a faster, more transparent way to move money across countries. By offering instant payments through Swift and CashPro, BAC can reduce delays and uncertainty in global transactions, encouraging more clients to route cross-border payment activity through the bank.
The opportunity is meaningful because BAC is targeting high-volume payment areas, such as remittances, gig-worker payouts and e-commerce marketplace payments. While these transactions are often smaller in value, they occur frequently. As volumes increase, transaction-related fees can build into a steady recurring revenue stream, making the product attractive from a long-term revenue perspective.
The launch is also expected to help BAC deepen relationships with corporate and institutional clients. Companies using CashPro for real-time global payments may also turn to the bank for treasury, cash-management, foreign-exchange and working-capital services. This will likely create cross-selling opportunities and improve client stickiness.
Features such as real-time tracking, full principal delivery and local-currency settlement will improve client experience. Businesses want certainty around when money is sent, when it arrives and how much the receiver gets. By reducing delays and improving transparency, BAC can make its payments platform more valuable.
Overall, as demand for faster and more reliable cross-border payments grows, the launch is expected to help Bank of America capture a larger share of global payment flows and gradually strengthen its fee-based revenue stream.
How Are BAC’s Peers Competing in This Space?
Global transaction banking peers such as JPMorgan JPM and Citigroup C are also investing in faster cross-border payment capabilities.
JPMorgan is strengthening its real-time cross-border payments capabilities through its blockchain-based Kinexys Digital Payments platform, which enables institutional clients to move deposits with JPMorgan instantly, including across borders and outside normal banking hours.
By supporting 24/7/365 payments, real-time transaction visibility, liquidity movement and offshore USD clearing, Kinexys positions JPMorgan as a leading large-bank competitor in tokenized payments and real-time treasury solutions.
Citigroup, conversely, is advancing its real-time cross-border payments capabilities by integrating Citi Token Services with its 24/7 USD Clearing platform. The solution enables institutional clients to move funds near-instantly across Citigroup and non-Citigroup accounts, initially in the U.K. and the United States, with plans to expand to more markets.
Bank of America’s Price Performance, Valuation & Estimates
In the past six months, BAC shares have lost 1.1% against the industry’s 2.2% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, Bank of America trades at a 12-month trailing price-to-tangible book (P/TB) of 1.96X, below the industry average of 3.24.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for BAC’s 2026 and 2027 earnings implies year-over-year growth of 16.8% and 14.2%, respectively. In the past week, earnings estimates for both years have been unchanged.
Image Source: Zacks Investment Research
Bank of America currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.7% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

BAC Plans to Launch Real-Time Global Payments: A Fee Revenue Catalyst?

The banking industry is entering one of the most significant workforce transformations in its history. For decades, banks relied on a well-established talent model: recruit large numbers of graduates into analyst programs, train them through repetitive but essential work and gradually develop future leaders from this pool of talent. Artificial intelligence (AI) is now challenging that model.
As AI systems become capable of analyzing financial data, generating reports, reviewing documents, conducting compliance checks and supporting customer interactions, many big banks like JPMorgan JPM, Goldman GS, Wells Fargo WFC and Citigroup C are reconsidering the need for large entry-level hiring classes. The shift is not simply about reducing headcount. It represents a fundamental change in how banks operate, generate profits and develop talent.
Recently, JPMorgan’s chief executive, Jamie Dimon, has said that the technology will eliminate some jobs, and the company will likely hire more AI specialists and fewer traditional bankers as technology adoption accelerates. Likewise, Citigroup’s chief executive, Jane Fraser, has warned that certain positions may no longer be needed due to investments in automation and AI.
Meanwhile, Goldman’s president, John Waldron, has described parts of the banking workforce as vulnerable to automation. Last year, Wells Fargo signaled that its workforce could shrink further in 2026 as part of a broader push to improve efficiency and expand the use of AI across its operations.
Banks’ AI Push Turns ROI-Focused
Banks are moving beyond viewing AI mainly as a cost-cutting tool and are increasingly tying investments to measurable returns, innovation and business growth. The latest Infosys Bank Tech Index shows stronger discipline, with participating banks canceling more projects before AI deployment while reducing post-launch cancellations. This suggests better upfront screening, and about 59% of deployed AI initiatives are now generating measurable business value.
Major U.S. banks are embedding AI into broader strategic plans. Citigroup is using AI to drive productivity gains as part of its planned $5-billion incremental investment from 2026 through 2028. Goldman is applying AI to improve productivity, support fee growth and expand operating leverage, including through its $1.5-billion partnership with Anthropic. JPMorgan is rolling out AI across investment banking while shifting hiring toward AI-skilled talent. Wells Fargo is using AI to improve workflows and customer engagement, with its Fargo virtual assistant surpassing 1 billion interactions as of March 31, 2026.
Overall, banks’ AI strategies are becoming more selective, disciplined and growth-oriented. The focus is shifting from launching more projects to converting the right projects into productivity gains, better customer service and revenue opportunities.
How AI-Driven Hiring Shifts Could Benefit Banks
From a financial perspective, the near-term impact is likely to be positive. Personnel expenses are among the largest cost categories for banks. By automating tasks, banks can improve productivity while reducing workforce-related costs. This creates meaningful operating leverage. Revenues can grow while staffing costs rise more slowly, supporting margin expansion. With this, key metrics such as return on equity, efficiency ratios and earnings per share could improve over time.
AI can also accelerate decision-making across the company. Loan underwriting can become faster, compliance reviews more efficient and client reporting more sophisticated. Investment bankers can spend less time preparing presentations and more time engaging with clients. Wealth managers can process larger volumes of market information in real time, while trading desks can analyze data faster and more efficiently. In each case, AI increases employee productivity and allows banks to serve more clients without proportional increases in staff.
Large global banks like JPMorgan, Citigroup, Wells Fargo and Goldman are especially well-positioned to benefit. Their substantial technology budgets allow them to invest in proprietary AI tools, cloud infrastructure, cybersecurity and specialized talent. While these investments may initially raise expenses, they can also create long-term competitive advantages.
Hidden Risks of AI-Driven Hiring Shifts
Despite the financial benefits, reducing entry-level hiring carries meaningful risks. If AI eliminates a substantial portion of junior-level work, banks may find themselves facing a long-term leadership challenge. Future executives need practical experience to understand markets, manage risks and make complex decisions. While AI can automate many analytical tasks, it cannot fully replace human judgment, relationship-building and strategic thinking. Reducing the number of young professionals entering the industry today may create shortages of experienced leaders a decade from now.
Banks also face operational and regulatory risks as they rely more heavily on AI systems. Errors in AI-driven decision-making could lead to flawed credit assessments, compliance failures, inaccurate risk models, or regulatory scrutiny. Greater AI adoption also raises concerns around cybersecurity, transparency, accountability and model bias.
As a result, banks must align automation with strong governance and human oversight, particularly in critical business and risk-management decisions.
Balancing Act: Technology & Talent
AI is set to reshape the banking industry because it depends heavily on processing information quickly and accurately. Banks that integrate AI effectively can become leaner, faster and more profitable, with improved cost structures, higher productivity and more personalized customer service.
However, the long-term winners will not simply be the banks that cut the most jobs. They will be those who balance automation with talent, using AI to improve efficiency while still developing future leaders.
The future of banking will be defined by how well institutions combine AI with human expertise. Investors should monitor efficiency ratios, compensation costs, headcount trends, technology spending and return on equity to determine whether AI investments are improving financial performance. Overall, banks that control cost growth without weakening revenue generation are likely to benefit the most.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Here's How AI-Driven Hiring Shifts Could Reshape Banks' Performances

A consortium of major U.S. banks, including JPMorgan JPM, Bank of America BAC, Citigroup C and Wells Fargo WFC, is preparing to launch a shared tokenized deposit network. The move is likely to reshape the future of digital payments and banking infrastructure.
The initiative, expected to go live in the first half of 2027, will be operated by The Clearing House. It is designed to bring traditional bank deposits onto blockchain-based payment rails while keeping them within the regulated banking system.
The planned network will allow tokenized deposits, digital representations of conventional bank deposits, to move across blockchain infrastructure with near-instant settlement and 24/7 availability. Unlike stablecoins issued by private crypto companies, tokenized deposits remain liabilities of regulated banks and continue to operate under existing banking, accounting and compliance frameworks. This marks a critical advantage for banks, enabling innovation without introducing the regulatory uncertainties often associated with crypto-native payment products.
Here’s Why This Shift Matters for Banks’ Future
The move comes as banks face growing competition from stablecoin issuers and blockchain-based financial platforms. Lately, stablecoins have gained traction for cross-border payments, treasury management and on-chain transactions, raising concerns among traditional lenders that customer deposits could gradually migrate away from the banking sector. By offering a blockchain-enabled alternative, JPMorgan, Bank of America, Citigroup, Wells Fargo and other large banks aim to deliver the speed, efficiency and programmability of digital assets while keeping customer funds within the regulated financial system.
Several major banks have already signaled deeper interest in digital assets. Citigroup is exploring the possibility of issuing its stablecoin while also investing in tokenized deposit infrastructure and digital asset services. JPMorgan has expanded its blockchain initiatives, building on years of experience with proprietary digital payment systems. Bank of America has also indicated that it may enter the stablecoin market when regulatory conditions and customer demand support such a move.
Banks’ push into tokenized deposits is not just a defensive response to crypto-native competition; it is also an opportunity to modernize core financial infrastructure. A tokenized deposit network could enable faster settlement, lower processing costs and more efficient cross-border payments, particularly for corporate clients that routinely move large sums across markets.
Strategically, tokenized deposits could help banks remain central to the emerging tokenization economy, wherein deposits, securities and other financial assets increasingly move on blockchain-based networks. As institutional blockchain adoption expands, banks are positioning tokenized deposits as a link between traditional finance and digital assets, helping them preserve their roles in payments, lending and capital markets.
Road Ahead for Banks & Blockchain
Although demand for tokenized deposits is still developing, major banks appear determined to build the infrastructure ahead of broader adoption. For JPMorgan, Wells Fargo, Bank of America and Citigroup, the goal is not simply to follow a crypto trend. It is to protect the foundation of their business.
Deposits remain the backbone of banking, while payments continue to be a critical source of customer relationships and revenues. By creating a shared tokenized deposit network, large banks can respond to stablecoin competition without giving up their central role in the financial system.
If successful, tokenized deposits could become an important bridge between traditional finance and blockchain technology. They may not replace stablecoins, but they could give banks a powerful alternative like faster payments, regulated deposits and a stronger foothold in the next generation of financial infrastructure.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Big Banks Eye Tokenized Deposits as Stablecoin Competition Heats Up

Citigroup, Inc. C expects its net interest income (NII), excluding Markets, to grow 5-6% year over year in 2026, supported by improving loan demand, stabilizing deposit costs and disciplined balance-sheet management. The outlook reflects the bank’s efforts to benefit from a more favorable rate and funding environment while continuing to reshape its business toward higher-quality growth.
A key driver is the improvement in loan and deposit trends. At the end of the first quarter of 2026, Citigroup reported $761.6 billion in loans, up 1% sequentially, and $1.45 trillion in deposits, up 3% from the prior quarter. This steady balance-sheet growth provides a stronger base for interest income generation. In the first quarter of 2026, NII rose 12% year over year to $15.7 billion, while NII excluding Markets increased 7% to $12.9 billion, indicating solid momentum heading into the rest of the year.
For 2026, management expects strong loan growth in Cards and Wealth businesses, driven by continued product innovation, solid customer engagement and its high-quality card portfolio, which is further expected to support NII expansion. Citigroup is also likely to benefit from stabilizing funding costs.
After initial monetary easing in 2024 and three rate cuts in 2025, the Federal Reserve has kept rates steady so far in 2026. As such, lower rates are easing pressure on deposit costs while allowing the bank to capture better spreads as loan demand improves.
The company’s broader transformation plan further supports the NII growth target. Citigroup is simplifying operations, exiting non-core consumer businesses and reallocating resources toward core franchises. These moves are expected to generate $2-$2.5 billion in annualized savings by 2026 and help the company deliver positive operating leverage.
Overall, Citigroup’s 5-6% NII growth goal rests on three pillars: balance-sheet growth, lower funding-cost pressure and a leaner operating model focused on core banking opportunities.
What Do C’s Peers Say About Their 2026 NII Expectations?
Bank of America BAC and JPMorgan JPM are two peers of Citigroup, which also expects their NII to grow in 2026.
Bank of America indicated that 2026 NII could reach the upper end of 6-8% growth. Bank of America expects growth to be driven by higher yields on fixed-rate assets and steady consumer spending.
JPMorgan expects NII to reach $103 billion in 2026, even as it builds against a lower rate backdrop. Part of the lift is likely to come from Markets NII. JPMorgan expects 2026 NII, excluding Markets, of $95 billion, implying Markets NII of $8 billion, an area that can be more variable than the core lending-and-deposit engine.
C’s Price Performance & Zacks Rank
Shares of Citigroup have gained 69.5% over the past year compared with the industry’s growth of 27%.
Image Source: Zacks Investment Research
Currently, C carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Citigroup's Path to 5-6% NII Rise in 2026: What's Driving the Upside?

Key Points
It also posted modest revenue growth.
Finally, it benefited from inclusion on a key small-cap stock index.
May was an eventful month for exercise equipment and services specialist Peloton Interactive (NASDAQ: PTON). The company's stock, beaten down considerably on declines in its all-important subscriber count and a clutch of bottom-line losses, staged a comeback in May. It rose by more than 17% that month, on the back of a flip into profitability in its latest quarter, and other positive factors such as its inclusion on an important stock index.
Shaping up?
The first major newsworthy event in May for Peloton was the release of its fiscal third-quarter 2026 figures. For the period, the company boosted revenue by 1% year over year to $631 million. Net income under generally accepted accounting principles (GAAP) came in at over $26 million ($0.06 per share), quite a dramatic change from the year-ago loss of nearly $48 million.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
That meant a mixed quarter for Peloton, as it handily beat the consensus analyst estimate of just under $619 million. It barely missed on the bottom line; meanwhile, as those pundits were collectively predicting GAAP net income of $0.07 per share.
The news behind the numbers was mixed, too. Yes, the company managed to improve its revenue (if modestly) and land convincingly in the black on the bottom line. It also slightly raised the low end of its full-year revenue guidance range to $2.42 billion from $2.4 billion (the high end remains $2.44 billion). However, its count of connected fitness subscriptions fell again, by nearly 8% to 2.66 million.
Several analysts tweaked their takes on Peloton after earnings were released, and they were clearly more impressed by the positives than discouraged by the negatives. Influential investment bank Goldman Sachs added $1 to its price target on the stock, to $8, and maintained its buy recommendation. Later in the month, big bank Citigroup made a similar move, pushing its price target to $6 per share from $5. It kept its neutral rating intact.
Indexed
On May 21, Peloton was tapped to become a component stock of the S&P SmallCap 600 index, replacing Enviri, effective May 27. That helped to give Peloton a late-in-the-month lift, not least because getting included in such a lineup makes a stock a good target for the many index funds that trawl the market looking for portfolio candidates.
Aping its more successful users, Peloton as a company has slimmed down and become a leaner operation, which is one reason its bottom line looked so much better in the third quarter. If I were an investor, though, I'd be concerned about the continued erosion of subscriptions, since that indicates not every aspect of its business is in prime shape. Given that, I wouldn't be buying this stock now.
Should you buy stock in Peloton Interactive right now?
Before you buy stock in Peloton Interactive, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Peloton Interactive wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $443,191!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,258,838!*
Now, it’s worth noting Stock Advisor’s total average return is 941% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of June 8, 2026.
Citigroup is an advertising partner of Motley Fool Money. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group and Peloton Interactive. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why Peloton Stock Zoomed More Than 17% Higher Last Month

Key Points
SpaceX is holding its IPO, aiming to raise a massive $75 billion.
The IPO price is set at $135, but once it starts trading, there's no way to know which way the stock will go.
Two companies will win regardless of the stock's direction: Goldman Sachs and Morgan Stanley.
Elon Musk is about to test investors' limits with the initial public offering (IPO) of SpaceX. The IPO price has been set at $135 per share, with plans to sell 555.6 shares. That means the company is raising a massive $75 billion. There is material news flow around the deal, some of it positive and some negative. At this point, there's no way to know if the stock will rise or fall once it starts trading.
There are ways for investors to get exposure to the space sector outside of SpaceX before the company's IPO, if you want to play the potential halo effect across the industry. And Baron Partners Fund has a material investment in the currently private company, with the mutual fund's shareholders standing to benefit if the stock takes off. But there's a risk the shares don't do that, and the IPO halo turns into a crown of thorns for the space sector. The only sure-fire winners in this IPO are likely to be investment banks Goldman Sachs (NYSE: GS) and Morgan Stanley (NYSE: MS). Here's why.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
IPOs are complicated to pull off
Initial public offerings aren't things that just happen on their own. There is a long list of rules around going public, a complex process that must be worked through to get it done, and Wall Street has to be informed about the company. Getting IPOs over the finish line is a key function of investment banks, which collect handsome fees for overseeing the process.
In the case of SpaceX, the company has chosen Goldman Sachs as its lead investment bank, with Morgan Stanley tagged for a secondary spot. But it's a big deal, so Bank of America (NYSE: BAC), Citigroup (NYSE: C), and JPMorgan Chase (NYSE: JPM) are also involved. Goldman Sachs will make the most money from the deal, with Morgan Stanley and the rest coming in behind it. The banking fees will amount to 0.75% of the total raised, according to Bloomberg, or around $500 million. That's actually a relatively low fee percentage-wise for the investment banking services being rendered, but the size of the deal is clearly making up for it.
There is a lot to know about the SpaceX deal before you buy it
While you should tread with caution with any IPO, this deal is particularly notable. Reading the company's S-1 registration statement will get you into the groove on key facts. For example, the company is losing money, and Elon Musk will own more than 80% of SpaceX after the IPO. Also, trading is expected to happen on June 12, which is fast approaching.
Unlike SpaceX, Goldman Sachs and Morgan Stanley are profitable businesses. They don't actually need the fees they'll earn from SpaceX, but getting the bragging rights that come with heading up the deal is likely to be important in the competitive investment banking industry. The rich banking fees they'll earn aren't bad, either, of course.
The benefit for Goldman Sachs, Morgan Stanley, and the other investment banks won't end there, however. The underwriters will have the option to purchase just over 83 million shares, representing an $11 billion investment. Of course, owning SpaceX stock will only be a benefit if the shares rise, and there's no way to know if that will happen.
In fact, if the investment banks did their job correctly, the IPO price would be the "correct" price. And the market wouldn't push it higher or lower. That's not the way things normally happen, of course, because emotions play such a pivotal role in stock prices over the short term. And with so much hype around SpaceX, many investors are likely expecting it to rise.
Let the dust settle with SpaceX
It is probably better for long-term investors to avoid the feeding frenzy that often accompanies big IPOs like SpaceX. It is an important company in the still-emerging space industry, but the hype around this IPO could still leave investors surprised by the outcome. Given the long-term nature of the entire space sector and artificial intelligence (SpaceX owns xAI), taking a prudent approach and waiting to see what happens with the IPO rather than jumping in with both feet probably won't hurt you much.
Meanwhile, if you feel you need to be involved in the IPO in some way, consider buying Goldman Sachs or Morgan Stanley, the only sure-fire winners from this massive IPO.
Should you buy stock in Goldman Sachs Group right now?
Before you buy stock in Goldman Sachs Group, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Goldman Sachs Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $443,191!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,258,838!*
Now, it’s worth noting Stock Advisor’s total average return is 941% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of June 7, 2026.
Bank of America is an advertising partner of Motley Fool Money. Citigroup is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group and JPMorgan Chase. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.