After years of cautious observation, Citigroup is now laying the groundwork to enter the cryptocurrency custody business, with plans to debut the service in 2026.
The move comes as major financial institutions accelerate their integration into digital asset markets, a shift fueled by the Trump administration’s friendlier stance on crypto regulation.
Biswarup Chatterjee, who leads Citi’s global partnerships and innovation division, revealed that the bank’s crypto strategy has been quietly developing over the past few years. Speaking to CNBC, he said the company aims to roll out a reliable storage solution for institutional investors and asset managers, highlighting that the groundwork is already well underway.
Unlike investment banks still testing the waters, Citi intends to directly safeguard clients’ digital assets. The project includes a mix of in-house development and collaborations with specialized fintech providers. “Some assets will rely on Citi’s own technology, while others could integrate trusted third-party systems,” Chatterjee noted, suggesting a hybrid model that balances security with flexibility.
The service will position Citi among a growing number of global banks seeking to offer regulated crypto infrastructure. For years, the sector has struggled with fragmented custody standards – ranging from self-custody wallets to centralized exchange models – leaving institutional investors hesitant to engage. Citi’s entry could mark a turning point by introducing the scale, compliance, and oversight expected from a top-tier bank.
Still, crypto custody is not without risk. Security breaches and asset theft remain major concerns, but Citi’s decades-long record in protecting client holdings may give it an edge. The bank’s entry also reflects a broader Wall Street transformation: while some players like JPMorgan limit their exposure to crypto trading, others are now treating blockchain-based assets as a core part of future finance.
With regulatory clarity improving and institutional demand rising, Citi’s long-awaited move signals that digital asset custody is no longer a fringe experiment – it’s becoming part of mainstream banking.
Source
