Citigroup is preparing one of the most ambitious moves yet by a Wall Street giant into the digital asset space.
- Citigroup will launch a full digital asset infrastructure in 2026 to integrate Bitcoin directly into its traditional asset framework.
- The bank plans direct on-balance-sheet custody, not just ETF-style exposure.
- Institutional clients will manage Bitcoin alongside stocks and bonds within one reporting, compliance, and risk system.
- The platform will operate 24/7 and connect crypto transactions to existing banking rails via Swift and APIs.
Citigroup confirmed plans to roll out a full digital asset infrastructure designed to integrate Bitcoin directly into its traditional banking architecture. The goal is not just crypto exposure – it is making Bitcoin function inside the same institutional framework that manages roughly $30 trillion in conventional assets.
Bitcoin Inside the Banking Core
Unlike ETF-based access models, Citi’s strategy centers on direct custody. That means the bank intends to hold native digital assets on its own balance sheet rather than offering indirect exposure through third-party products.
Institutional clients will be able to see Bitcoin positions alongside equities, fixed income, and other traditional holdings within a unified reporting system. Compliance, tax workflows, and risk monitoring will operate through the same internal controls already used across global markets desks.
The initiative is being led by Nisha Surendran, Head of Digital Asset Custody Development, and reflects a broader push to eliminate the operational divide between decentralized assets and legacy finance.
No Private Keys, No Separate Systems
Under the new structure, Citi will provide bank-grade custody, wallet infrastructure, and key management. Institutional clients will not need to manage private keys or rely on external crypto-native custodians.
Operationally, the bank plans to use Swift messaging and API connectivity to route Bitcoin instructions through existing financial rails. In other words, crypto transactions will plug directly into established settlement and reconciliation systems.
Because Bitcoin trades continuously, Citi is also transitioning toward a 24/7 operational model – a structural shift for an institution historically aligned with traditional market hours.
A Hybrid Technology Stack
The backbone of the rollout will include Citi Integrated Digital Assets Platform (CIDAP), an internal system designed to bridge fiat infrastructure and public blockchains. Its interoperability engine is intended to move value between internal ledgers and networks such as Ethereum.
The bank is also expanding Citi Token Services, which already enables tokenized deposits for near-instant global transfers among major corporate clients.
Externally, Citi is exploring partnerships with digital asset infrastructure firms, including reported discussions with companies such as Metaco, while also backing fintech players focused on stablecoin payments.
Regulation Opens the Door
This expansion is unfolding in a markedly different regulatory climate compared to previous crypto cycles.
The passage of the Guiding and Establishing National Innovation for U.S. Stablecoins Act in 2025 provided a clearer legal framework for U.S. banks to hold digital assets and engage with tokenized money. Industry observers view that shift as a key enabler for deeper institutional integration.
Citi’s internal research suggests that market participants expect digital assets to account for roughly 10% of global market turnover within five years. That projection is shaping capital allocation and infrastructure decisions today.
Competitive Positioning
Rival institutions such as Morgan Stanley and JPMorgan Chase have also expanded digital asset initiatives. However, Citi’s move toward direct on-balance-sheet custody signals a deeper level of integration into core banking operations rather than a peripheral product offering.
If executed as planned in 2026, Citi’s platform would represent a structural shift: Bitcoin would no longer sit outside the banking perimeter but operate within the same risk, compliance, and reporting environment as traditional financial instruments.
For institutional investors, that could mark the moment Bitcoin transitions from an alternative asset class into a fully bank-integrated component of global finance.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/citi-to-offer-institutional-bitcoin-custody-and-24-7-settlement/