Citigroup is exploring opportunities to launch cryptocurrency custody and payment services, initially focusing on stablecoin reserves. This decision comes amid recent legislative changes in the U.S.
Citigroup's Asset Custody Plans
Biswarup Chatterjee, an executive in Citigroup's service division responsible for treasury and payment management, told Reuters that the bank would likely start by safeguarding 'high-quality assets backing stablecoins.' The bank is also evaluating custody solutions for crypto-linked exchange-traded products, including spot Bitcoin and Ether ETFs. 'There needs to be custody of the equivalent amount of digital currency to support these ETFs,' Chatterjee noted.
History of Engagement with Cryptocurrencies
Earlier this year, Citigroup teamed up with Switzerland’s SIX Digital Exchange to use blockchain for tokenizing private market assets. The bank has publicly backed tokenization since 2023, projecting it could represent a $5 trillion market by 2030. Citigroup has also been linked to discussions with other major U.S. banks — including JPMorgan, Wells Fargo, and Bank of America — on a potential jointly issued stablecoin.
Impact of Legislation on the Market
Traditional finance’s renewed interest in crypto has been reinforced by recent U.S. policy steps, including the passage of the GENIUS Act — the country’s first federal stablecoin law — and the CLARITY market structure bill. The House also approved the Anti-CBDC Surveillance State Act in July. If Citigroup moves ahead, it would join a growing number of Wall Street firms positioning to meet the surging demand for regulated crypto investment products.
Should Citigroup proceed with these plans, it would join a growing list of firms ready to offer regulated cryptocurrency services, emphasizing the rising interest in crypto assets from the traditional finance sector.
