Citi, the global banking giant, has announced plans to launch a crypto custody service by 2026. The bank intends to enable institutional clients to securely manage native digital assets such as Bitcoin or Ether through Citi’s own infrastructure.
Citi has been developing the project for the past two to three years, exploring both in-house solutions and potential partnerships. The goal is to build a “credible custody product” for asset managers and other institutional clients. In addition to custody, Citi is also considering issuing a stablecoin, according to CNBC.
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Technical approach
Biswarup Chatterjee, Citi’s Global Head of Partnerships & Innovation, explained that Citi is pursuing a hybrid strategy: some custody components will be developed internally, while others - particularly for specific asset types - may be provided externally with greater flexibility. Citi also plans to expand its existing Citi Token Services platform, which already facilitates token-based payments between international locations.
Citi’s move is part of a broader trend of traditional banks taking steps into the crypto ecosystem. While competitors like JPMorgan have so far refrained from launching dedicated custody services, Citi is taking the next step toward integrating digital assets into conventional banking. At the same time, the bank faces regulatory challenges - robust security measures, compliance frameworks, and clear guidelines will be essential to build institutional investor confidence.
Context
With its planned entry into the custody business, Citi is positioning itself alongside competitors such as BNY Mellon and Standard Chartered, both of which already offer digital asset custody solutions. Citi, however, could gain a decisive edge through its global reach and established infrastructure. Institutional trust in major financial institutions remains a crucial factor, especially as many crypto firms continue to grapple with regulatory uncertainty and security risks.
Citi’s planned entry into crypto custody highlights the rapid convergence between traditional financial services and digital assets. While many banks remain cautious, Citi is moving forward with a clear strategy and regulatory groundwork. If successfully launched in 2026, the bank could take a leading role in the institutional adoption of crypto assets - and increase pressure on other global banks to follow suit. Citi is sending a clear message: the future of the global financial system will be inseparable from digital assets.
