Citi is reportedly preparing to launch a cryptocurrency custody service by 2026, joining a growing list of Wall Street institutions that are expanding into bitcoin and other assets amid a friendlier U.S. regulatory climate.
Biswarup Chatterjee, Citi’s global head of partnerships and innovation for its services division, told CNBC that the bank has been developing its custody offering for more than two years and plans to bring it to market “in the next few quarters.”
The service would allow Citi to hold native bitcoin and other cryptocurrencies on behalf of clients, a significant move for one of the world’s largest custodians of traditional financial assets.
“We may have some completely in-house designed and built solutions targeted at certain assets and certain segments of our customers, while we may use a third-party, lightweight, agile solution for other asset types,” Chatterjee told CNBC.
Earlier this month, analysts at Citigroup issued a bullish 12-month outlook for bitcoin, setting a target of $181,000 and revising their year-end forecast to $132,000. They cited strong inflows of around $7.5 billion and growing institutional demand.
Analysts said they were more positive on Bitcoin than Ethereum, noting that Bitcoin is capturing the majority of new capital entering cryptocurrency markets and that a favorable U.S. regulatory environment could help sustain momentum through 2026.
Banking and custody of digital assets
Custody, or the safekeeping of customer assets, is considered one of the most crucial and challenging aspects of institutional cryptocurrency adoption. Just today, JPMorgan stated that it will not directly hold its clients’ cryptocurrencies.
While specialty firms like Anchorage and BitGo have dominated the space, big banks see an opening to offer regulated alternatives backed by decades of experience safeguarding securities.
Citi’s move into cryptocurrencies comes as Washington has taken steps to provide clearer rules for digital assets through measures like the GENIUS Act, giving major financial institutions the confidence to develop cryptocurrency-related products.
Citi’s exploration of custody runs parallel to its broader blockchain efforts, including Citi Token Serviceswhich enables real-time cross-border payments using tokenized deposits.
The bank is also exploring stablecoins – digital tokens typically backed by fiat currency – as tools for global trade and payments in regions with less developed banking systems.
Other banks are pursuing similar initiatives As previously mentioned, JPMorgan recently unveiled plans for a deposit token, while Bank of America is reportedly developing a stablecoin product.
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