- Citi Investor Services will launch Bitcoin custody later this year as part of its new Custody+ platform.
- Citi will become the largest U.S. bank by assets to offer crypto custody, joining BNY and US Bank.
- The SEC rescinded an accounting rule known as SAB 121, which had previously made it financially prohibitive for banks to provide custody.
Citi Investor Services announced plans to support cryptocurrency custody later this year, starting with Bitcoin, as part of the launch of its new Custody+ platform. Clients will receive an integrated experience to access both crypto and traditional custody from one of the world’s largest custodians, which held assets under custody and administration of $34.5 trillion at the end of June.
When launched, Citi will become the largest U.S. bank by assets to offer digital asset custody. However, BNY holds significantly more assets under custody and launched its solution in 2022, obtaining a waiver in 2024 despite the SEC’s SAB 121 accounting rule. Among the top ten U.S. banks, only BNY and US Bank are currently live with crypto custody.
The SEC’s SAB 121 rule, formulated under Chair Gensler, had made it financially prohibitive for banks to provide custody. BNY launched its solution despite the rule, but other banks like State Street put their plans on hold while the regulation was in effect. JPMorgan stated last year that providing crypto custody was not a near-term priority.
The SEC rescinded SAB 121 early last year according to reports, removing a primary obstacle for major banks entering the crypto custody space. Consequently, Citi’s move signals a potential shift among large financial institutions.
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