Citi Signals Confidence in Crypto With Institutional Custody Plans

Citi (C) plans to launch a cryptocurrency custody service in 2026, marking a major step in the bank’s expansion into digital assets. 

The move will allow the Wall Street giant to hold native cryptocurrencies such as Bitcoin and Ether on behalf of institutional clients, according to a report by CNBC.

Citi’s Long-Awaited Crypto Move

The custody platform has been in development for nearly three years, said Biswarup Chatterjee, the bank’s global head of partnerships and innovation for services. 

“We have various kinds of explorations,” he told CNBC. “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.”

The offering would give institutional investors a secure, regulated option for storing digital assets—something many traditional players consider essential before fully entering the crypto market.

A Hybrid Approach to Custody

Chatterjee emphasized that Citi’s strategy will blend internal development with external partnerships. 

“We may have certain solutions that are completely designed and built in-house … whereas we may use a third-party, lightweight, nimble solution for other kinds of assets,” he said. “We’re not currently ruling out anything.”

This hybrid approach mirrors broader industry trends, as major financial institutions increasingly seek to balance innovation with the security and regulatory oversight their clients demand.

Building a Broader Digital Asset Strategy

The custody service is part of Citi’s growing digital asset portfolio. 

During the bank’s second-quarter earnings call in July, CEO Jane Fraser said Citi was exploring both a potential stablecoin issuance and tokenized deposits—though she noted tokenization is the nearer-term priority. This is shortly after the stablecoin market cap soared to above $300 billion.

Stablecoin market cap (Source: DefiLlama)

Last week, Citi Ventures joined Visa in investing in BVNK, a stablecoin payments startup. The investment follows earlier blockchain experiments in cross-border payments and trade finance, signaling Citi’s intent to compete in the next phase of financial infrastructure modernization.

Joining Wall Street’s Crypto Custody Race

If launched, Citi’s custody service would place it among a select but expanding group of traditional financial firms entering the crypto back office. 

JPMorgan, BNY Mellon, and State Street have all taken steps in recent years to integrate blockchain and crypto storage into their service offerings.

Citi’s entry could further legitimize crypto custody as a mainstream financial service, especially as institutional demand for digital assets continues to rise.