Citi is making a bold move into the crypto world. The banking giant is developing a crypto custody service, aiming for a 2026 launch after spending the past two to three years building the necessary infrastructure, according to Biswarup Chatterjee, Citi’s global head of partnerships and innovation.
Why does this matter?
For asset managers and institutional clients, custody solutions are a key gateway into digital assets. Citi’s service would allow clients to securely hold digital coins and tokens, giving traditional investors the confidence to step into the crypto space without worrying about security or compliance.
Chatterjee told CNBC that this initiative reflects Citi’s strategic push deeper into digital asset services, a move that mirrors the broader trend among major financial institutions.
With more banks entering the crypto arena, offering secure and regulated solutions has become a competitive necessity.
The timing aligns with a shifting regulatory landscape. The SEC has recently approved Bitcoin and Ethereum ETFs managed by Wall Street heavyweights like BlackRock and Fidelity. This regulatory shift has accelerated traditional banks’ interest in digital assets, opening the door for firms like Citi to innovate.
It’s not just Citi. JPMorgan is making strides in stablecoin development, while Morgan Stanley is enabling clients to trade Bitcoin, Ethereum, and Solana via its E*Trade platform. The competition is fierce, and banks are racing to roll out comprehensive digital asset strategies.
Collaboration is also on the rise. Last week, ten major banks, including Citi, Bank of America, Barclays, Goldman Sachs, and UBS, announced a joint initiative to explore a 1:1 reserve-backed digital money solution. This stablecoin project represents a coordinated effort among some of the world’s largest financial institutions, signaling that digital assets are moving firmly into the mainstream.
Political winds are shifting too. President Donald Trump campaigned as a supporter of crypto and has championed crypto-friendly legislation in 2025. Compared to past administrations, regulatory agencies are pulling back on enforcement, creating a favorable environment for banks to expand their digital asset offerings.
The bottom line:
Citi’s crypto custody platform isn’t just a product, it’s part of a larger trend. Traditional financial institutions are embracing digital assets, blending regulatory compliance with technological innovation. For investors and asset managers, the takeaway is clear: digital assets are no longer fringe, they are a strategic imperative.
