U.S. banking giant Citigroup is moving closer to offering digital asset custody services, a sign of how deeply traditional finance is embedding itself into crypto.
The $2.5 trillion bank is also weighing the launch of its own stablecoin, part of a broader push to modernize payments and asset management in a friendlier regulatory climate under President Donald Trump.
Aiming for Stablecoin and ETF Custody
Biswarup Chatterjee, who heads partnerships and innovation for Citigroup’s services division, said the bank’s first step would likely be safeguarding the reserve assets that back high-quality stablecoins. The bank is also studying how to store assets for crypto ETFs, including Bitcoin and Ethereum products — a space where Coinbase currently dominates.
The scale of that opportunity is huge. BlackRock’s IBIT fund alone holds over $90 billion, and every ETF requires equivalent custody of the underlying digital assets.
Faster Payments and Tokenized Dollars
Citigroup already runs tokenized U.S. dollar payment rails for instant global transfers between accounts. The bank is now looking at extending this capability to stablecoins, allowing clients to move funds instantly or swap them into fiat on demand.
Chatterjee said such services could dramatically cut settlement times compared to traditional bank transfers, which often take days.
Compliance and Security as Cornerstones
Any expansion into crypto custody, he added, would come with strict due diligence to ensure assets have legitimate origins and with reinforced cybersecurity to protect holdings.
The move reflects a broader trend among major banks. JPMorgan and PNC Bank have both deepened ties with Coinbase for crypto services, while BNY Mellon recently partnered with Ripple to safeguard reserves for its RLUSD stablecoin.
For Citigroup, entering the crypto custody and stablecoin markets could provide a new foothold in an industry increasingly attracting both institutional and retail capital.
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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.
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