Citibank has announced the goal of launching a crypto asset custody service by 2026, marking a decisive step towards integrating digital currencies into mainstream financial services.
The world of traditional finance is undergoing a monumental transformation. After years of skepticism towards cryptocurrencies like bitcoin and ether, the major Wall Street banks are now accelerating their entry into the digital asset universe.
According to Biswarup Chatterjee, global head of partnerships and innovation in Citi’s services division, the bank has been working for two or three years on developing a cryptocurrency custody solution. “We have several explorations underway and hope that in the coming quarters we can offer a credible solution to our asset managers and clients,” Chatterjee explained.
Custody in the crypto world can take various forms: from direct holding of assets by a digital exchange to self-custody managed by the institution itself. The custody service allows a bank to hold assets—such as stocks or cryptocurrencies—on behalf of clients, offering security and reliability. Citi, in particular, is preparing to directly custody native cryptocurrencies, thereby strengthening institutional investors’ trust.
Wall Street’s shift was also made possible by a regulatory turnaround in the United States. The administration of President Donald Trump introduced a more favorable regulatory environment for digital assets, with new laws like the GENIUS Act regulating specific areas, including stablecoins. This has allowed traditional financial institutions to develop products and services related to cryptocurrencies, bridging the gap between classic and digital finance.
Managing security remains one of the main challenges in the custody of digital assets, especially due to risks related to cyberattacks and thefts. However, banks like Citi can offer a safer alternative thanks to their long experience in asset custody and compliance with stringent regulations.
Citi is evaluating both internally developed technological solutions and potential partnerships with third parties. “We might have solutions fully designed and built in-house for certain assets and client segments, while for other assets we might rely on external, lightweight, and agile solutions,” Chatterjee specified. The bank does not rule out any option, maintaining a flexible approach open to innovation.
Not all Wall Street giants are convinced
Despite Citi’s enthusiasm, not all major banks share the same strategy. JPMorgan CEO Jamie Dimon has stated that the bank will allow clients to purchase cryptocurrencies but will not offer custody services for these assets. This position reflects the caution of part of the sector, still divided on how to enter the digital currency market.
In addition to custody, American banks are exploring new applications of blockchain and stablecoins. JPMorgan announced this year a deposit token based on the Ethereum network, which digitally represents a bank deposit and allows money transfers 24/7. Citi has developed a similar service, Citi Token Services, which enables cross-border fund movement at any time.
These innovations demonstrate how blockchain is becoming a key tool for the rapid transfer of money between different currencies, even outside traditional banking hours.
Stablecoins represent the next big opportunity for banks. These are digital coins pegged to a fiat currency like the dollar and backed by real assets, such as bonds, to ensure value stability. The main examples are USDC by Circle and USDT by Tether.
According to Chatterjee, stablecoins could prove particularly useful in parts of the world where banking and payment systems are less developed. As Citi’s clients expand into these markets, the ability to use a stablecoin could facilitate transactions with local suppliers and customers. “We recognize that there are areas in the world where our clients have specific commercial needs,” Chatterjee emphasized.
Currently, Citi is still in the early stages of exploring stablecoins. The bank’s recent participation in investing in the stablecoin infrastructure company BVNK confirms the growing interest in this sector.
Not just Citibank: other banks are moving towards crypto
Other Wall Street giants are also evaluating the potential of stablecoins. Bank of America CEO Brian Moynihan stated in July that the bank is working on launching its own stablecoin. JPMorgan, for its part, is engaged in similar explorations.
Scott Lucas, global head of markets digital assets at JPMorgan, explained that the bank is studying how to offer new services to clients both in terms of liquidity and responding to the growing demand to operate with stablecoins. “The strategy is still being defined, also because only in recent months has there been clearer regulation on the opportunities offered,” Lucas stated.
A crypto future for global finance
Citi’s announcement marks a turning point for the financial sector. The entry of major banks into crypto asset custody and the development of blockchain and stablecoin-based services paves the way for a new era of finance, where digital technology and regulation meet to offer innovative and secure solutions.
With the support of a clearer regulatory framework and the push for innovation, Wall Street is ready to play a leading role in the digital asset revolution. 2026 is shaping up to be a key year, with Citi and other financial giants ready to redefine the relationship between banks, clients, and cryptocurrencies.
For further reading, it is recommended to consult the Citigroup Annual Report 2024 and the report from the Bank for International Settlements (BIS) – Central Bank Digital Currencies.