Citi To Launch Crypto Custody Services In 2026

Citigroup plans to launch a crypto custody service in 2026, becoming the latest major bank to diversify into digital asset services. The bank has been working on its crypto custody service for nearly three years. 

Banks are offering digital asset products, including stablecoin offerings and cryptocurrency trading. 

Citi to Debut Crypto Custody Service 

Citigroup is set to debut its crypto custody service in 2026 as mainstream financial institutions become receptive to cryptocurrencies. According to reports, Citi has been working on developing a custody service for digital assets for nearly three years. According to Biswarup Chatterjee, Citi’s global head of partnerships and innovation, the custody service project is moving ahead as planned as Wall Street’s interest in crypto deepens. Chatterjee was quoted as saying that the upcoming custody service would see Citi hold digital tokens and other assets on behalf of clients. 

“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.” 

The offering is one of Citi’s biggest blockchain-related endeavors. Big banks have long kept their distance from cryptocurrencies. However, things have changed under the Trump administration, thanks to clearer regulations and the passage of the GENIUS Act. The GENIUS Act created a friendlier environment for banks that wanted to handle stablecoins and other blockchain-based services. Top banks had expressed interest in digital assets since the United States Securities and Exchange Commission (SEC) approved spot Bitcoin ETFs managed by the likes of BlackRock and Fidelity. 

Exploring Partnerships 

According to Chatterjee, the upcoming custody service will hold native cryptocurrencies on behalf of the bank’s clients, rather than use a third-party platform or an external exchange. The decision is significant as crypto custody carries several security risks, including cyberattacks and theft. However, Citi is confident in its regulated structure and decades of experience handling traditional asset custody for global clients. Chatterjee stated that the bank is testing multiple options for the service, some created in-house and others through partnerships with other entities. 

“We may have certain solutions that are completely designed and built in-house that are targeted towards certain assets and certain segments of our clients. At the same time, we may use a third-party, lightweight, nimble solution for other kinds of assets. We’re not currently ruling out anything.”

Stablecoin Expansion 

Citi is also expanding into stablecoins, with Chatterjee stating that stablecoins could help clients do business in countries where traditional banking and payment systems are lacking. 

“We do recognize the fact that there are these pockets in the world where you have a commercial need from our clients to be there and do business.”

Citi already operates Citi Token Services, a system that allows customers to move funds across borders instantly using blockchain technology. It competes with JPMorgan’s service, which also runs on the Ethereum network and facilitates the 24/7 movement of money. Citi has also invested in BVNK, a company that builds stablecoin infrastructure. However, Chatterjee describes Citi’s efforts as being in the “early stages of stablecoin exploration.”

Other Banks Doubling Down On Crypto 

Several banks have moved to grab a piece of the digital asset space. Last week, major banks, including Banco Santander, Bank of America, Barclays, BNP Paribas, Citi, Deutsche Bank, Goldman Sachs, MUFG Bank Ltd, TD Bank Group, and UBS, announced they were exploring a 1:1 reserve-backed form of digital money. Bank of America’s Brian Moynihan had said in July that the bank was developing its own stablecoin project, while Scott Lucas, head of markets and digital assets at JPMorgan, stated that the firm was exploring digital assets as well. 

“There’s a real opportunity for us to think about how we can offer different services for our clients on the cash side, as well as responding to client demand to do things on stablecoins. And that strategy is still emerging, as you can understand, because it’s only really been a few months since we’ve had some clearer regulation around what the opportunity looks like.”

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.