Citibank to Launch Crypto Custody Services in 2026 After Years of Development

• Biswarup from Citi told CNBC that the bank is preparing to introduce a cryptocurrency custody platform in 2026.
• Citi’s plan coincides with the U.S. government taking a more supportive approach to digital assets under President Trump.

Citibank plans to roll out its much-anticipated cryptocurrency custody services in 2026, offering secure storage for private keys that control access to digital assets like Bitcoin (BTC) and Ether (ETH).

Similar to traditional banks safeguarding cash or securities, crypto custody involves additional technical and security challenges.

Biswarup Chatterjee, Citi’s global head of partnerships and innovation, explained to CNBC that the bank is blending its in-house technology with third-party solutions to deliver a reliable and robust custody service for asset managers and institutional clients.

Biswarup Chatterjee explained,

This initiative aligns with Citibank’s digital asset strategy, which includes Citi Token Services, a blockchain-based platform enabling 24/7 cross-border fund transfers, and exploration into stablecoins as potential tools for facilitating transactions in regions with underdeveloped financial infrastructure.

Regulatory Support

Citibank’s entry into crypto custody services is part of a trend among traditional financial institutions that are embracing digital assets. The move is facilitated by the recent regulatory reforms the market has seen, which now favor institutional participation in digital assets.

Under Joe Biden’s administration, traditional financial institutions stayed away from the cryptocurrency market due to the unstable regulatory environment and the Securities and Exchange Commission (SEC) filing lawsuits against crypto companies.

There’s now a more favorable regulatory environment under President Trump’s administration, which has introduced clearer crypto regulations like the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act).

The Act requires stablecoin issuers to maintain full reserve backing, follow strict transparency and auditing standards, and operate under regulatory oversight. By clarifying the rules, the law reduces legal uncertainties, making traditional banks more confident in offering crypto services.

This is expected to accelerate the adoption of cryptocurrencies. As highlighted in a recent report, global banks, including Bank of America, Goldman Sachs, Deutsche Bank, BNP Paribas, Santander, Barclays, TD Bank, MUFG, UBS, and Citi, are collaborating to create blockchain-based assets pegged to G7 currencies.

Despite the regulatory changes, some banks, including JPMorgan, are proceeding cautiously. On CNBC’s Squawk Box Europe on October 13, Scott Lucas, JPMorgan’s global head of markets for digital assets, said the bank intends to participate in crypto trading but will not directly hold clients’ cryptocurrency.

Lucas noted,

He emphasized that the bank’s approach remains largely shaped by considerations of “risk appetite and regulatory exposure,” which continue to guide its digital asset strategy.