Citibank Enters the Crypto Race: Custody Platform Set for 2026 Launch Amid Institutional Push

Citibank is officially joining the crypto custody race, announcing plans to launch a regulated digital asset storage platform in 2026 after more than three years of development.

The action marks one of Wall Street’s clearest commitments yet to integrating blockchain infrastructure into mainstream finance, as institutional appetite for secure crypto exposure continues to surge.

Citibank’s Institutional Crypto Custody Vision

According to Biswarup Chatterjee, Citibank’s global head of partnerships and innovation, the bank has been quietly building a hybrid crypto custody system designed to serve institutional investors, asset managers, and hedge funds.

The service will enable clients to securely store native cryptocurrencies like Bitcoin and Ethereum, combining Citi’s in-house security framework with third-party blockchain infrastructure for flexibility and scale.

Chatterjee told CNBC that the project is entering its final stages, stating: “We’re hoping that in the next few quarters, we can come to market with a credible custody solution that meets institutional standards.”

The model echoes a growing industry trend where traditional banks develop their own blockchain tools while partnering with specialized fintech providers to handle on-chain operations and custody logistics.

Stablecoins, Regulation, and Citi’s Blockchain Ambitions

Citibank’s entry comes as the U.S. regulatory climate for digital assets improves under the GENIUS Act, a landmark framework clarifying the treatment of stablecoins and tokenized assets.

This shift has reignited Wall Street’s crypto ambitions, with Citi, JPMorgan, and other global banks exploring blockchain-based payment and settlement systems.

Citi’s CEO Jane Fraser has already confirmed that the bank is testing a Citi-branded stablecoin and tokenized deposit service to support 24/7 settlements for corporate clients.

The bank’s blockchain operations currently enable cross-border transfers between New York, London, and Hong Kong using distributed ledger technology, laying the groundwork for seamless integration between custody, payments, and tokenized assets.

A Broader Institutional Pivot Toward Digital Assets

Citi’s upcoming crypto custody launch mirrors a wider institutional trend as traditional finance moves into the blockchain era. Other global banks like BNY Mellon, Deutsche Bank, and Standard Chartered have rolled out similar offerings, positioning custody as the backbone of institutional crypto adoption.

With $2.57 trillion in assets under custody, Citi’s scale gives it an advantage in bridging traditional finance and decentralized infrastructure.

Analysts say that if executed effectively, the 2026 rollout could make Citi one of the most influential players in institutional crypto, offering clients both security and regulatory assurance in a rapidly evolving digital economy.

Cover image from ChatGPT, BTCUSD chart from Tradingview