Citigroup (C.N) is weighing plans to enter the stablecoin and cryptocurrency custody space, as sweeping policy changes in Washington push major financial institutions deeper into digital assets.
A top executive told Reuters that the U.S. banking giant is exploring stablecoin custody and payment services, along with custody offerings for crypto-linked exchange-traded products (ETPs).
Biswarup Chatterjee, Global Head Partnerships & Innovation, Citigroup (Treasury & Trade Solution, Securities Services), said the bank’s initial focus would likely be on custody services for “high-quality assets backing stablecoins.”
Citi is also assessing custody options for Bitcoin (BTC) and Ether (ETH) ETFs. “There needs to be custody of the equivalent amount of digital currency to support these ETFs,” Chatterjee noted.
Bitcoin ETFs have surged in popularity since debuting in early 2024. Data from Bitbo shows the 12 U.S. spot Bitcoin ETF issuers now hold nearly 1.3 million BTC, about 6.2% of the total supply. BlackRock’s iShares Bitcoin Trust (IBIT) leads the market with an estimated $88 billion in value.
This is not Citi’s first step into crypto. Earlier this year, it partnered with Switzerland’s SIX Digital Exchange to leverage blockchain for tokenizing private markets. The bank has been bullish on tokenization since 2023, calling it the next “killer use case” in crypto, with a potential $5 trillion market by 2030.
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