- Citi plans to introduce crypto custody services for institutional clients by 2026.
- The service is designed to provide a regulated platform for holding digital assets such as cryptocurrencies.
- The bank has worked on this initiative for two to three years, according to senior leadership.
- Citi is exploring both internal technology and external partnerships to support the custody platform.
- Other major banks have taken different approaches to crypto custody, with some currently declining to offer such services.
Citi is preparing to launch a crypto custody service aimed at institutional clients by 2026. The planned offering will provide a regulated environment for clients to store their digital assets, according to the bank.
Biswarup Chatterjee, who leads partnerships and innovation in the services division at Citi, stated that the company has been developing the custody service over the past two to three years. He told CNBC that the bank is making steady progress toward launching it. Following news of the initiative, Citi shares rose as much as 1.8% in pre-market trading.
Chatterjee explained that the service will allow Citi to hold native cryptocurrencies, such as Bitcoin, on behalf of clients. This provides an alternative to storing digital assets independently or keeping them on exchanges, which can carry security risks. “We have various kinds of explorations, and we’re hoping that in the next few quarters, we can come to market with a credible custody solution that we can offer to our asset managers and other clients,” he said. The bank is assessing both internal technological solutions and collaborations with third parties. Chatterjee noted, “So we’re not currently ruling out anything.”
Some other large U.S. banks have taken cautious positions regarding digital asset custody. For example, JPMorgan permits clients to buy cryptocurrencies but does not act as a custodian. Morgan Stanley recently expanded crypto access to more accounts, including retirement plans, but does not offer self-custody options for digital assets.
Chatterjee also indicated that stablecoins—cryptocurrencies pegged to stable assets like the U.S. dollar—could be useful in regions with less-developed banking systems. Citi has recently invested in BVNK, a stablecoin infrastructure firm, as part of its broader digital asset strategy. However, Chatterjee emphasized that the bank is in the early phases of exploring stablecoins.
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