- Citi aims to offer institutional custody of native crypto in 2026 after several years of development.
- The bank intends a hybrid approach by building some custody tech in-house while using nimble third-party solutions for other assets.
- The effort sits alongside Citi Token Services and comes as US regulatory moves ease bank participation in the crypto space.
Citi is preparing to launch a cryptocurrency custody service for institutional investors by 2026, marking another step by a major Wall Street institution into the digital asset market. The service, in development for around two to three years, will allow the bank to hold native crypto assets such as Bitcoin and Ether on behalf of clients.
Biswarup Chatterjee, Citi’s global head of partnerships and innovation within its services division, told CNBC that the bank has been working on creating a “credible custody solution” for institutional clients, including asset managers.
He said Citi’s approach combines internally developed technology with potential partnerships, adding that some products could be built entirely in-house while others may rely on lightweight third-party platforms.
Custody, which involves securely holding assets on behalf of clients, is considered a crucial element for institutional involvement in crypto. Citi’s service would manage the digital coins directly rather than relying on exchanges or self-custody solutions.
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A New Chapter for Traditional Finance
The bank’s move comes as the United States adopts a more favourable regulatory stance toward digital assets under President Donald Trump’s administration, with new laws like the GENIUS Act aiming to clarify rules for products such as stablecoins.
Citi’s broader digital asset strategy also includes exploring blockchain applications for cross-border payments and trade finance. The bank already operates its own blockchain-based “Citi Token Services,” which enables 24/7 international money movement. Additionally, Citi Ventures recently invested in BVNK, a stablecoin payments company, highlighting the bank’s interest in digital settlement tools.
If launched, the custody platform would place Citi among a small but growing group of traditional banks entering crypto infrastructure, alongside institutions such as JPMorgan and U.S. Bank. By combining institutional safeguards with blockchain innovation, the initiative signals Wall Street’s strengthening confidence in crypto’s long-term role in finance.
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