TLDR:
- Citi plans to roll out crypto custody services in 2026 after two years of internal development.
- The bank will combine in-house solutions with third-party systems to handle client crypto assets.
- Citi’s entry follows regulatory reforms that now favor institutional participation in digital assets.
- The initiative could pave the way for Citi’s future involvement in stablecoins and tokenized money.
Citi is gearing up to launch its first crypto custody service in 2026, marking a clear step toward the bank’s deeper involvement in digital assets.
The move would position Citi alongside a growing number of Wall Street institutions entering the crypto sector. The decision follows a more supportive U.S. regulatory environment and renewed investor interest in digital currencies.
The plan, in development for nearly three years, could bridge traditional finance and crypto storage under one roof. As digital asset management grows, Citi seems ready to compete for a share of the institutional crypto market.
Citi’s Crypto Custody Plan Moves Forward
Biswarup Chatterjee, Citi’s global head of partnerships and innovation, confirmed that the bank is preparing a dedicated custody solution for cryptocurrencies. He said development has been ongoing for two to three years and is now entering its final stages.
The service will allow Citi to hold native digital assets, including cryptocurrencies such as Bitcoin and Ether, on behalf of institutional clients.
The custody platform is expected to rely on a hybrid approach. Citi plans to build core technologies in-house while partnering with specialized third-party providers for specific features. This dual model would give the bank flexibility in handling different types of digital assets and compliance requirements.
Chatterjee explained that some clients may prefer in-house custody, while others might benefit from external technology integration.
Citi’s entry into crypto custody comes at a time when financial institutions are experimenting with blockchain-based tools. The bank already operates Citi Token Services, which enables tokenized money transfers across borders.
By building on that foundation, Citi could create a seamless network for both payments and custody within its existing infrastructure.
This initiative also highlights a shift in attitude among major banks. Once cautious about crypto, many are now racing to develop blockchain solutions that improve settlement speed and liquidity.
For Citi, entering crypto custody means competing directly with newer custodial firms and maintaining trust through its long-standing experience in asset management.
Stablecoins and Regulation Are Shaping the Strategy
Citi’s move is tied closely to changing U.S. regulations.
The current administration has introduced new rules, such as the GENIUS Act, that outline clearer frameworks for stablecoins and crypto assets. These reforms have given major banks the confidence to explore blockchain products more openly.
Several U.S. banks, including JPMorgan and Bank of America, are testing blockchain applications that enable real-time settlements. Citi’s own exploration of stablecoins could expand its reach into regions where traditional payment systems are less developed.
Chatterjee noted that stablecoin-like solutions might serve clients operating in markets with weaker banking infrastructure.
Security remains a top concern in custody. Digital asset storage exposes institutions to potential cyberattacks, which can lead to the loss of client funds. However, banks like Citi can leverage strict compliance systems and decades of experience in asset safeguarding to offer greater assurance than unregulated crypto firms.
The broader market context also matters. As exchange-traded crypto products gain popularity, institutional investors are looking for regulated custodians to store their assets.
Citi’s timing could place it ahead of competitors who are still assessing crypto’s long-term viability. By 2026, the bank may stand as one of the first major financial institutions to offer secure crypto custody directly to its clients.
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Source: https://blockonomi.com/citi-targets-2026-for-crypto-custody-launch-amid-blockchain-push/
