Citi Targets 2026 Launch For Crypto Custody Service As Wall Street Deepens Digital Assets Push

Originally reported by CNBC on 13 October 2025.

Global banking group Citi plans to launch a crypto asset custody service in 2026, according to a report by CNBC, marking another move by major US financial institutions into the digital currency space.

Biswarup Chatterjee, Global Head of Partnerships and Innovation in Citi’s Services business, told CNBC that the bank has been developing the custody product for two to three years and is now progressing toward market readiness.

“We have various kinds of explorations ... and we’re hoping that in the next few quarters, we can come to market with a credible custody solution that we can offer to our asset managers and other clients,” Chatterjee said.

Traditional financial institutions have historically kept their distance from cryptocurrencies such as Bitcoin and Ether. However, under President Donald Trump’s administration, a more supportive regulatory environment — including the GENIUS Act, which seeks to regulate areas such as stablecoins — has encouraged banks to explore services related to digital assets.

In crypto markets, custody can take various forms. It can mean an exchange holding digital coins, a firm using self-custody, or a bank acting as custodian on behalf of its clients. Custodian banks have long managed securities such as company shares, and a number of new firms have emerged to handle digital asset custody specifically.

Chatterjee said Citi’s forthcoming service would involve the bank directly holding native cryptocurrencies. He noted that while cyberattacks and theft risks remain a concern for all custodial models, regulated banks have extensive experience in safeguarding client assets.

The lender is considering both in-house and partnership-based technology options.

“We may have certain solutions that are completely designed and built in-house that are targeted towards certain assets and certain segment of our clients, whereas we may use a ... third party, lightweight, nimble solution for other kind of assets. So we’re not currently ruling out anything.” Chatterjee told CNBC.

Not all Wall Street institutions share this strategy. JPMorgan Chief Executive Jamie Dimon said earlier this year that, although the bank allows clients to buy cryptocurrencies, it does not plan to provide custody services for them.

Stablecoin Exploration

US banks have increasingly been experimenting with blockchain-based financial products. JPMorgan this year announced plans for a deposit token, designed as a digital representation of a commercial bank deposit that enables money movement 24 hours a day, seven days a week.

These deposit tokens are built on the Ethereum network. Citi has developed a comparable system called Citi Token Services, which facilitates instant cross-border payments.

Banks view blockchain technology as a mechanism to move funds across currencies and jurisdictions more efficiently, particularly outside of traditional settlement hours.

The next area attracting attention is stablecoins — digital tokens typically pegged to fiat currencies such as the US dollar and backed by real-world assets like bonds. The largest commercial stablecoins in circulation are Circle’s USDC and Tether’s USDT.

Chatterjee said stablecoins may offer particular value in markets with underdeveloped financial infrastructure, especially for corporate clients transacting with local suppliers and customers.

“We do recognize the fact that there are these pockets in the world where you have a commercial need from our clients to be there and do business,” Chatterjee said.

He added that Citi remains in the early stages of assessing stablecoin applications. Last week, stablecoin infrastructure firm BVNK received investment from Citi, highlighting the bank’s ongoing engagement in the sector.

Other Wall Street institutions are also evaluating stablecoin opportunities. Bank of America Chief Executive Brian Moynihan confirmed in July that the lender is working on a stablecoin initiative, while JPMorgan continues its own research.

Scott Lucas, Global Head of Markets Digital Assets at JPMorgan, told CNBC:

“There’s a real opportunity for us to think about how we can offer different services for our clients on the cash side, as well as responding to client demand to do things on stablecoins. And that strategy is still emerging, as you can understand, because it’s only really been a few months since we’ve had some more clear regulation around what the opportunity looks like.”

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