Citigroup is considering entering the stablecoin and crypto custody markets, seeking to modernize its payments and asset management.
Focus on Stablecoins and Crypto ETFs
Biswarup Chatterjee, head of partnerships and innovation for Citigroup’s services division, stated that the bank's first step would likely involve safeguarding the reserve assets backing high-quality stablecoins. The bank is also studying how to store assets for crypto ETFs, including Bitcoin and Ethereum products.
Faster Payments and Tokenized Dollars
Citigroup already operates tokenized U.S. dollar payment systems for instant global transfers between accounts. The bank is now looking to extend this capability to stablecoins, allowing clients to move funds instantly or swap them into fiat on demand.
Compliance and Security as Cornerstones
As Citigroup expands into crypto custody, the bank plans to implement strict due diligence to ensure that assets have legitimate origins and to bolster cybersecurity to protect holdings. This reflects a broader trend among major banks like JPMorgan and PNC Bank, which have deepened ties with Coinbase for crypto services.
Citigroup's entry into the crypto custody and stablecoin markets could provide a significant foothold for the bank in an industry increasingly attracting both institutional and retail capital.
