TLDR:
- Citi plans to launch crypto custody services in 2026 after two years of internal development.
- The bank will combine internal solutions with third -party systems to manage client crypto assets.
- CITI’s entry follows regulatory reforms that now favor institutional participation in digital assets.
- The initiative can pave the way for CITI’s future involvement in Stablecoins and tokenized money.
Citi is on the way To start its first crypto custody service in 2026, mark a clear step towards the bank’s deeper involvement in digital assets.
The move would place Citi along with a growing number of Wall Street institutions entering the crypto sector. The decision follows a more supportive American regulatory environment and renewed investors’ interest in digital currencies.
The plan, under development for almost three years, could bridge traditional financing and crypt storage under one roof. As digital asset management grows, Citi seems ready to compete for part of the institutional crypto market.
Citi’s Crypto Custody Plan moves forward
Biswarup Chatterjee, Citi’s Global Head of Partnership and Innovation, confirmed that the bank prepares a dedicated custody solution for Cryptocurrencies. He said that the development has been going on for two to three years and is now entering its last stages.
The service will enable Citi to contain native digital assets, including Cryptocurrencies such as Bitcoin and Ether, on behalf of institutional customers.
The storage platform is expected to rely on a hybrid method. Citi plans to build nuclear technologies internally while working with specialized third -party suppliers for specific functions. This double model would provide the bank’s flexibility when it comes to managing different types of digital assets and compliance requirements.
Crap explained that some customers may prefer their own custody, while others may benefit from external technology integration.
CITI’s entry into crypto care comes at a time when financial institutions experiment with blockchain-based tools. The bank already runs Citi Token services, which enables tokenized money transfers across borders.
By building on that foundation, Citi was able to create a seamless network for both payments and custody within its existing infrastructure.
This initiative also highlights a change in attitude among large banks. Once careful with crypto, many are competing now to develop blockchain solutions which improves the speed of settlement and liquidity.
For Citi, entering Crypto Custody means competing directly with newer custody companies and maintaining trust through its long -term experience in asset management.
Stablecoins and regulation shapes the strategy
CITI’s move is closely bound to change US regulations.
The current administration has introduced new rules, such as Genius Act, which describes clearer framework for Stablecoins and Crypto assets. These reforms have given large banks confidence in exploring blockchain products more openly.
Several US banks, Including JPMorgan And Bank of America tests blockchain applications that enable real-time settlements. CITI’s own exploration of Stablecoins can extend the range to regions where traditional payment systems are less developed.
Chatterjee noted that Stablecoin-like solutions can serve customers operating in markets with weaker bank infrastructure.
Security is still a highest problem in custody. Digital asset storage exposes institutions to potential cyberattacks, which can lead to loss of client funds. However, banks like CITI can use strict compliance systems and decades of experience in access protection to offer greater insurance than unregulated crypto companies.
The broader market account stance is also important. When exchange traded crypto products receive popularity, institutional investors are looking for regulated guardians to store their assets.
Citi’s timing can place it in front of competitors that still judge Crypto’s long -term vitality. By 2026, the bank can stand as one of the first major financial institutions to offer secure crypto care directly to its customers.
