- Citi to launch crypto custody services in 2026, meeting rising institutional demand.
- Citi explores in-house and third-party solutions for secure digital asset custody.
- Growing trend of financial institutions exploring digital assets, despite JPMorgan’s caution.
Citi plans to launch digital asset custody in 2026, moving into a field mainstream banks are now entering. The goal is to hold Bitcoin, Ether, and other digital assets for institutional clients inside a regulated, segregated framework. The plan targets asset managers first, where mandate language often requires large, regulated custodians.
How long Citi has been building; and why now
Biswarup Chatterjee, Citi’s global head of partnerships and innovation, says the bank has been developing the service for several years and expects to offer a credible custody solution in the near term.
The push comes as client demand for secure, audited safekeeping rises and tokenization projects move from pilots to production with traditional finance users.
Related: Citigroup Confirms It Is Actively Evaluating a Citi-Issued Stablecoin
Where policy fits the on-ramp for conservative capital
U.S. policy shifts on stablecoins and market structure, including the GENIUS Act that is now in effect, open a narrow on-ramp for 401(k) platforms, state treasuries, and public pensions to test small crypto sleeves under fiduciary gatekeeping.
Citi’s bank-grade custody gives plan sponsors and asset managers a regulated provider that aligns with segregation, audit, and capital requirements.
What Citi will hold and how Citi may build the stack
Citi intends to hold digital assets on behalf of clients and to tailor custody by asset type. The roadmap includes in-house technology for core assets and third-party integrations for specialized tokens, plus stablecoin exploration that complements deposit-token rails and broader tokenization infrastructure.
The design prioritizes key management, disaster recovery, and institutional reporting.
How Citi addresses security and operational risk
Crypto custody services involve securely holding digital assets, which can be done either through self-custody by institutions or via exchanges. One major challenge in this space is the risk of cyberattacks that could lead to the theft of assets.
While banks, including Citi, face the challenge of securing digital assets, their existing history in the regulated custody of traditional financial assets may position them as A secure option compared to independent crypto custodians. Chatterjee highlighted the ongoing efforts at Citi to develop strong technologies to address these concerns.
Industry-Wide Movement Toward Digital Asset Services
Citi’s move into crypto custody follows a broader trend among financial institutions to accept the possibility of digital assets. Recently, major banks such as Banco Santander, Bank of America, and Deutsche Bank have also begun exploring the concept of a “1:1 reserve-backed form of digital money” or stablecoins.
In contrast to Citi’s efforts, JPMorgan has maintained a more cautious stance, with CEO Jamie Dimon voicing concerns about offering crypto custody services despite allowing clients to purchase cryptocurrencies.
Related: Bitcoin Breaks $118K as Citi Predicts $133K and Robinhood Pushes Tokenized Finance
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