Citigroup is ramping up its efforts in the cryptocurrency arena by planning to develop asset custody and blockchain-based payment systems.
Custody for Stablecoins and ETFs
Citigroup intends to secure the reserves backing stablecoins. As Biswarup Chatterjee, head of partnerships at Citi, states, '*Providing custody services for those high-quality assets backing stablecoins is the first option we are looking at*'. The bank also aims to focus on the custody of crypto ETFs, which is crucial for financial products backed by Bitcoin or Ethereum.
Innovations in Payments and Tokenization
Citigroup is developing systems for instant tokenized transactions that will be available 24/7 between New York, London, and Hong Kong. This will allow customers to instantly transfer stablecoins or convert them directly into dollars. According to Chatterjee, discussions with clients regarding these services are already well advanced.
Citigroup's Strategy in the Context of New Legislation
The recent GENIUS Act requires each stablecoin to be backed 1:1 by safe assets. This becomes an advantage for Citigroup, which possesses the necessary vaults, licenses, and expertise. The bank has already chosen its strategy: it has turned down programmable digital currencies, opting for a course of independence from platform-based solutions.
Citigroup is actively implementing innovations in the cryptocurrency and blockchain space, already moving towards further development of its services. By working within the framework of new legislative standards, the bank aims to significantly strengthen its position in the market.
