Citigroup has confirmed it will launch its anticipated crypto custody service for institutions in 2026, culminating nearly three years of quiet development. The initiative, according to bank sources, aims to offer a robust and regulated solution for high-profile clients. This strategic move positions the banking giant at the forefront of digital asset adoption in high finance. Thus, it anticipates a growing demand for security and regulatory compliance.
The new service is designed to custody assets like Bitcoin and Ethereum, in addition to exploring the use of stablecoins. The platform will not only target investors but will also offer solutions to securities services clients. Citi plans to custody crypto ETFs, marking an evolution from traditional asset management to a modern infrastructure. As a preliminary step, the bank will update its asset servicing systems in 2025. This will enable real-time settlement and enhance the platform’s overall operational efficiency.
The entry of a global player like Citi into this sector is a highly relevant milestone for the crypto ecosystem. Historically, the lack of regulated custody services has been one of the biggest obstacles for institutional investors. Citi’s proposal solves this problem by combining its financial security expertise with the technology needed to protect private keys. Consequently, this opens the door to greater acceptance and capital flow into the digital asset market, strengthening its legitimacy.
The launch of this crypto custody service for institutions not only validates the asset class but also intensifies competition. Other companies and traditional financial entities are already developing similar services. This creates a race to capture the attention of investment funds, wealth managers, and other major players. The support for stablecoins will also significantly streamline cross-border payments and connect markets that previously operated in isolation, improving global liquidity.
How will Citi impact the digital asset market?
The potential impact of this initiative is multifaceted and promises to redefine market dynamics. Firstly, Citi’s involvement could reduce volatility by attracting more stable, long-term capital. Furthermore, its rigorous focus on regulatory compliance will set a new security standard. To mitigate risks, the bank will implement advanced cybersecurity layers and internal governance. It will also establish strategic alliances with technology providers specializing in digital asset protection.
The roadmap is clear, with the modernization of its internal infrastructure in 2025 as the next major step. Subsequently, the official launch in 2026 will mark the start of its operations. The product and investment teams must now closely monitor licenses and technical details. The compliance area, in turn, will ensure traceability and KYC/AML controls before the market launch, ensuring a smooth and secure transition for its clients.
