Global banking giant Citigroup is gearing up to introduce a cryptocurrency custody service by 2026, signaling its intensified entry into the digital asset arena, according to a report. The initiative represents a significant effort by institutions to adopt blockchain-based financial infrastructure. The crypto custody offering, which has been in development for the past two to three years, is set to primarily serve asset managers and institutional clients. Biswarup Chatterjee, Citi’s Global head of partnerships and innovation for its services division, stated that the product is anticipated to launch in the upcoming quarters.
“We have various kinds of explorations underway, and we are hoping to come to market with a credible custody solution for our clients,” Chatterjee stated in an interview. Crypto custody entails the protection of digital assets like Bitcoin and Ethereum, and it carries significant risks—especially concerning cyberattacks and theft. Chatterjee recognized these concerns but emphasized that institutions like Citi are strategically equipped to tackle them, thanks to their regulatory expertise and established history in traditional asset custody.
The bank is set to launch a new offering that will feature custody services for native cryptocurrencies. Citi is assessing a combination of its own technology and collaborations with external providers to enhance the service. Citi’s custody solution is a key component of its expansive digital asset strategy. In the Q2 FY25 earnings call held in July, CEO Jane Fraser disclosed that the bank is investigating the possibility of issuing a stablecoin—a digital token on the blockchain that is pegged to a fiat currency. Fraser emphasized that the bank’s immediate priority is on tokenised deposits, which are considered to have more practical commercial uses at this time.
Chatterjee emphasized that stablecoins might serve a crucial function in regions where financial infrastructure is still developing. “We acknowledge that there are areas where our international clients require dependable digital payment solutions to engage with local vendors and consumers,” he stated. “Stablecoins may provide valuable functionality in these markets.” Citi’s stablecoin initiatives remain in the exploratory stage, yet this development highlights the bank’s increasing dedication to digital innovation amid the rising institutional interest in blockchain and digital assets.