Big bank Citi is getting ready to handle digital money for its major clients. The U.S.-based financial giant plans to offer regulated custody services for cryptocurrencies like Bitcoin and Ethereum starting in 2026. This move shows how Wall Street is increasingly embracing digital assets. The bank has been working on this secure digital custody solution for three years and is now in the final stages of its development. Citi is also thinking about creating its own stablecoin and turning bank deposits into digital tokens.
The global banking heavyweight, Citi, based in the U.S., recently shared its plans. It aims to roll out cryptocurrency custody services by 2026. This signals another big step for Wall Street firms into institutional digital asset adoption. A report from CNBC clarified that Citi will let its big clients safely store cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) under official rules. This move cements Citi’s push into the digital asset world.
Developing the Plan
Biswarup Chatterjee, Citi’s global head of partnerships and innovation for services, confirmed the project has been in the works for two to three years. He noted that the bank is now fine-tuning the platform and checking its final details. “We are looking into many different things,” Chatterjee told CNBC. “We hope to launch a reliable custody solution in the coming quarters. This will be for our asset managers and other clients.” He stressed that this project gives institutional investors a safe, rule-bound way to hold cryptocurrencies. Many see this as key for joining the digital asset market without lowering their compliance standards.
A Hybrid Approach for Secure Systems
Chatterjee explained that Citi is using a mix of strategies to build its custody system. Some parts of the tools are being built inside the bank. Other parts might come from teaming up with outside companies that specialize in this area. “We might create some solutions entirely ourselves,” he said. “For other types of assets, we could use quicker, more flexible solutions from other companies. We’re keeping all options open right now.” This method lets Citi bring together its strong financial systems with the nimbleness of tech startups. Big institutions often use this strategy as they enter the blockchain space.
Looking Beyond Custody: Stablecoins and Tokenized Assets
Citi’s custody project is just one part of its digital strategy. CEO Jane Fraser mentioned during the second-quarter earnings call that the bank is also looking into issuing a stablecoin. However, she made it clear that creating tokenized deposits is its main focus right now. Meanwhile, Citi Ventures, the bank’s venture capital arm, recently invested in BVNK with Visa. BVNK is a startup that works on stablecoin payments. This adds to Citi’s earlier tests with blockchain for trade finance and payments across borders.
If Citi’s custody service gets off the ground, it will join other major banks in managing digital assets. BNY Mellon, JPMorgan, and Fidelity already offer similar services to their institutional clients. Through these efforts, Citi is showing its dedication to new financial ideas. It wants to be a key player as traditional finance and the crypto world come together. This market keeps drawing big institutional interest, even with its ups and downs and unclear rules.