Citigroup Inc (NYSE:C) plans to roll out a crypto custody service by 2026, signaling a deeper push into the digital asset space.
What Happened: Citi executives revealed the bank has spent the past two to three years developing the service, aiming to offer a trusted custody solution for asset managers and other clients, enabling Citi to hold cryptocurrencies directly.
According to CNBC, the custody offering may blend in-house technology with strategic partnerships, providing flexibility depending on asset types and client needs.
In parallel, Citi is conducting early-stage exploration of stablecoins and investing in firms like BVNK, positioning itself to provide clients with blockchain-based payment and treasury solutions.
The bank, along with peers, is also experimenting with digital tokens for faster, 24/7 transfers, including Citi Token Services and JPMorgan's deposit token.
Also Read: Bitcoin Slides Below $112,000 As Ethereum, XRP, Dogecoin Drop Over 3% On Early Tuesday
Why It Matters: U.S. regulatory frameworks have become more favorable to digital assets, thanks in part to initiatives like the GENIUS Act, enabling traditional financial institutions to explore crypto products.
While some banks, such as JPMorgan, remain cautious, opting to let clients hold crypto without taking custody themselves, others see strong potential in blockchain-based solutions.
Citi's move highlights the growing integration of crypto custody, stablecoins, and blockchain payments into mainstream financial services.
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