Citibank is formally becoming a member of the crypto custody race, asserting plans to launch a regulated digital asset storage platform in 2026 after greater than three years of growth.
The motion marks one in every of Wall Avenue’s clearest commitments but to integrating blockchain infrastructure into mainstream finance, as institutional urge for food for safe crypto publicity continues to surge.
BTC's worth developments to the draw back on the each day chart. Supply: BTCUSD on Tradingview
Citibank’s Institutional Crypto Custody Imaginative and prescient
In line with Biswarup Chatterjee, Citibank’s international head of partnerships and innovation, the financial institution has been quietly constructing a hybrid crypto custody system designed to serve institutional traders, asset managers, and hedge funds.
The service will allow purchasers to securely retailer native cryptocurrencies like Bitcoin and Ethereum, combining Citi’s in-house safety framework with third-party blockchain infrastructure for flexibility and scale.
Chatterjee advised CNBC that the challenge is coming into its ultimate levels, stating: “We’re hoping that within the subsequent few quarters, we are able to come to market with a reputable custody resolution that meets institutional requirements.”
The mannequin echoes a rising business development the place conventional banks develop their very own blockchain instruments whereas partnering with specialised fintech suppliers to deal with on-chain operations and custody logistics.
Stablecoins, Regulation, and Citi’s Blockchain Ambitions
Citibank’s entry comes because the U.S. regulatory local weather for digital belongings improves underneath the GENIUS Act, a landmark framework clarifying the therapy of stablecoins and tokenized belongings.
This shift has reignited Wall Avenue’s crypto ambitions, with Citi, JPMorgan, and different international banks exploring blockchain-based fee and settlement methods.
Citi’s CEO Jane Fraser has already confirmed that the financial institution is testing a Citi-branded stablecoin and tokenized deposit service to assist 24/7 settlements for company purchasers.
The financial institution’s blockchain operations presently allow cross-border transfers between New York, London, and Hong Kong utilizing distributed ledger know-how, laying the groundwork for seamless integration between custody, funds, and tokenized belongings.
A Broader Institutional Pivot Towards Digital Belongings
Citi’s upcoming crypto custody launch mirrors a wider institutional development as conventional finance strikes into the blockchain period. Different international banks like BNY Mellon, Deutsche Financial institution, and Normal Chartered have rolled out comparable choices, positioning custody because the spine of institutional crypto adoption.
With $2.57 trillion in belongings underneath custody, Citi’s scale offers it a bonus in bridging conventional finance and decentralized infrastructure.
Analysts say that if executed successfully, the 2026 rollout may make Citi probably the most influential gamers in institutional crypto, providing purchasers each safety and regulatory assurance in a quickly evolving digital financial system.
Cowl picture from ChatGPT, BTCUSD chart from Tradingview
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