Citigroup is preparing to enter the digital asset custody space, with plans to launch cryptocurrency custody services by 2026. The move follows several years of development and internal testing, according to Biswarup Chatterjee, the bank’s global head of innovation and partnerships.
The bank is weighing a mix of in-house technology and external partnerships to build the platform. “We expect to present a credible custody solution for clients and asset managers within the next few quarters,” Chatterjee said.
The service would enable Citi to safeguard clients’ native cryptos directly, a move signaling the bank’s growing confidence in the crypto sector.
The move marks a different path from rival JPMorgan, which currently allows clients to buy crypto but does not hold it in custody. JPMorgan has, however, hinted it might change that stance in 2026.
Citi’s custody plans are part of a broader digital asset strategy the bank has been building throughout 2025. In July, Chief Executive Officer Jane Fraser stated that the bank is exploring the launch of a Citi-branded stablecoin, alongside tokenized deposits that could enable around-the-clock settlements for corporate clients.
The firm already runs blockchain-based transfers of U.S. dollars between its offices in Hong Kong, New York, and London. Discussions are also underway with clients on possible uses for stablecoins, such as instant payments or automated dollar conversions.
The bank’s efforts come as nine major global institutions—including Bank of America, Goldman Sachs, Citigroup, Deutsche Bank, Banco Santander, MUFG, BNP Paribas, TD Bank, and UBS—explore a jointly issued stablecoin backed by G7 currencies. Each token would be fully backed by reserves and pegged one-to-one with traditional money. The consortium has already begun consultations with regulators.
The rapid growth of the stablecoin sector has attracted increasing attention from both regulators and traditional lenders. Bloomberg Intelligence estimates that stablecoins could facilitate over $50 trillion in annual transactions by the end of the decade.
However, not all observers are optimistic. Standard Chartered recently warned that the rapid adoption of stablecoins could pull over $1 trillion in deposits out of emerging-market banks by the year 2028.
The Bank of England initially suggested caps on retail holdings between £10,000 ($13,330) and £20,000 ($26,660), but later softened the stance to accommodate exchanges needing higher liquidity.
Citi’s push into digital assets continues despite internal caution. Ronit Ghose, the bank’s head of future of finance research, noted that yield-bearing stablecoins could spark a repeat of the 1980s deposit flight when money market funds drew billions away from regulated banks offering lower returns.
Banking groups in the United States have urged lawmakers to tighten regulations, arguing that current rules give crypto firms an unfair advantage. Crypto firms, however, have dismissed those claims, saying there is no evidence that stablecoins are draining deposits from community banks.
Established crypto firms like MARA Holdings Inc. (NASDAQ: MARA) will be pleased that major financial institutions are now taking crypto seriously and are making plans to incorporate digital assets into their offerings.
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