Citigroup to Launch Crypto Custody Services in 2026
Citigroup plans to start offering crypto custody services in 2026. The bank has been working on this project for nearly three years. The goal is to strengthen its role in the digital asset market.
Biswarup Chatterjee, Citi’s Global Head of Partnerships and Innovation, told CNBC that the bank is making steady progress. Citi is exploring both in-house technology and partnerships with third parties. This will allow the bank to hold native cryptocurrencies directly.
Chatterjee said, “We may have certain solutions that are completely designed and built in-house for some assets and clients. For other assets, we might use a third-party, lightweight, nimble solution.”
Regulatory Changes Support Crypto Services
Citigroup’s move follows recent changes by U.S. regulators. The Federal Reserve removed its guidance that required banks to notify regulators before starting digital asset activities. The FDIC and OCC made similar changes. These steps remove barriers for banks to offer crypto services.
Positive Outlook on Crypto and Stablecoins
- Citigroup expects Bitcoin and Ethereum to perform well into 2026.
- Scott Chronert, Citi’s US equity strategist, said these cryptocurrencies can hedge against equities.
- Citi is also focusing on stablecoins, which could help in regions with limited banking infrastructure.
- Stablecoin firm BVNK revealed that Citi Ventures invested strategically in the company.
- Bloomberg reported that Citi will join nine European banks to develop a regulated euro-based stablecoin.
- The group aims to launch this stablecoin in the second half of 2026.
