Citi to Offer Crypto Custody by 2026
One of the largest U.S. banks, Citi, has announced plans to launch a cryptocurrency custody service by 2026, allowing clients to securely store assets such as bitcoin and ethereum. The move could bring traditional finance and crypto closer together than ever before, CNBC reports.
A long-planned project
According to Citi, this is no quick move. The bank has been developing its digital asset custody solution for two to three years. Leading the project is Biswarup Chatterjee, Citi’s head of innovation and partnerships, who told CNBC that the bank aims to deliver a “credible custody solution” within the coming quarters.
The service will primarily target large investors such as fund managers and institutional clients, allowing them to hold cryptocurrencies through a regulated financial institution instead of relying on private wallets or unregulated providers.
What custody means and why it matters
Custody means the bank will physically manage and safeguard cryptocurrencies on behalf of clients. Many institutional investors have hesitated to enter crypto due to the lack of trusted infrastructure. If a major bank like Citi offers such a service, it could mark a turning point for the market.
Proprietary technology and external partnerships
Citi has chosen a hybrid approach for its project. Some tools are being developed in-house for full control, while others may come from external partners, such as smaller tech companies known for faster innovation. Chatterjee noted that the bank “does not rule out any options,” signaling a flexible strategy that combines the stability of a major bank with the agility of fintech startups.
Part of a broader digital strategy
The planned crypto custody service is part of Citi’s wider digital asset strategy. In recent months, the bank has stepped up activity in this space. During a July investor meeting, CEO Jane Fraser mentioned that Citi is also exploring the issuance of its own stablecoin, pegged to a traditional currency like the dollar. However, for now, the focus is on tokenized deposits – digital versions of traditional bank deposits transferable through Blockchain.
Citi Ventures, together with Visa, recently invested in BVNK, a startup specializing in stablecoin payments. This is not Citi’s first foray into Blockchain – the bank has previously experimented with it for trade finance and cross-border payments.
Implications for the market
If Citi follows through, it will join the growing but still limited number of traditional financial institutions venturing into the crypto ecosystem. For institutional investors, this could open the door to regulated, trustworthy access to crypto markets, fostering greater confidence and stability across the sector.
Sources:
https://www.cnbc.com/2025/10/13/citi-aims-to-launch-crypto-custody-in-2026-exploring-stablecoin.html