Citigroup is reportedly set to begin offering crypto custody services in 2026.
The firm is also among a coalition of financial companies looking to launch a joint stablecoin.
Citi's US equity strategist Scott Chronert said the firm expects Bitcoin and Ethereum to continue their positive run into late 2026.
Citigroup (C) is reportedly planning to begin offering crypto custody services in 2026, following nearly three years of work on the initiative.
Citigroup to offer crypto custody services in 2026
Citigroup plans to launch a crypto custody service in 2026, as it seeks to deepen its presence in the digital asset market, according to a Monday report from CNBC.
The report, which cited the bank's Global Head of Partnerships and Innovation, Biswarup Chatterjee, highlights that Citi has been developing the service over the past two to three years and is making steady progress.
Chatterjee added that Citi is exploring both in-house technology and potential third-party partnerships for the custody platform, which will allow the bank to hold native cryptocurrencies directly.
"We may have certain solutions that are completely designed and built in-house that are targeted towards certain assets and certain segment of our clients, whereas we may use a [...] third party, lightweight, nimble solution for other kind of assets," said Chatterjee.
The move comes as more traditional financial institutions explore crypto custody following the Federal Reserve's (Fed) decision to rescind its guidance that required banks to notify regulators before engaging in digital asset activities.
The Fed's action, alongside similar steps by the Federal Deposit Insurance Corporation (FDIC) and Office of the Comptroller of the Currency (OCC), effectively removes previous barriers for banks to offer crypto-related services.
Citigroup expects a positive outlook for the crypto market, particularly with Bitcoin (BTC) and Ethereum (ETH), as year-end approaches. Scott Chronert, US equity strategist at Citi, stated in an interview with CNBC last Wednesday that the firm expects Bitcoin and Ethereum to continue their run into 2026. He highlighted that the two top cryptos serve as hedging opportunities for investors against equities.
The bank has also deepened its involvement in stablecoins, with Chatterjee expressing that stablecoins could be useful in regions with limited banking infrastructure. He added that as Citi's clients grow in those markets, a stablecoin solution could help facilitate cross-border payments.
Stablecoin firm BVNK previously disclosed that Citi Ventures, the venture arm of Citigroup, had made a strategic investment in the company.
Bloomberg also reported Friday that Citi plans to join a consortium of nine European banks developing a regulated euro-based stablecoin, expanding its push into digital assets. The group, which includes ING, UniCredit, and DekaBank, aims to launch the token in the second half of 2026.
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