Citigroup Inc. is considering the introduction of cryptocurrency custody services for its clients amid shifting regulatory frameworks. Key services under consideration include custody for stablecoins and exchange-traded funds (ETFs).
Exploration of Crypto Custody Services
Biswarup Chatterjee, global head of partnerships and innovation at Citigroup, stated that the bank is exploring options for providing custody services for stablecoins and crypto ETFs. "Providing custody services for those high-quality assets backing stablecoins is the first option we are looking at."
Regulatory Changes
The regulatory landscape for cryptocurrency services in the U.S. is shifting as the Donald Trump administration has ended Operation Chokepoint 2.0, which barred traditional banks from offering banking services to crypto businesses. Additionally, President Trump has signed the GENIUS Act, which oversees the creation of regulated stablecoins.
Market Impact
Citigroup's stock has surged by 35 percent year-to-date, partly fueled by its exploration of the cryptocurrency market. Furthermore, the use of blockchain to modernize global financial markets has accelerated amid increasing regulatory clarity.
Citigroup continues to explore the possibilities of providing cryptocurrency custody services in response to growing interest from financial giants and evolving regulations.
