Citi to Launch Crypto Custody Service in 2026

Citigroup’s planned 2026 debut of a crypto custody service represents a significant milestone in the bank’s multi-year digital asset strategy. According to CNBC reports, the global head of partnerships and innovation, Biswarup Chatterjee, revealed that Citi has been developing this custody service over the past two to three years. The service will involve Citi holding digital coins and tokens for institutional clients, particularly asset managers who require secure storage solutions for their cryptocurrency holdings.

Chatterjee emphasized the bank’s commitment to delivering a credible custody solution, stating, “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.” This timeline suggests that while the full service launches in 2026, Citi aims to have its infrastructure and regulatory approvals in place well before the official debut. The custody service represents Citi’s latest foray into digital asset services, joining other initiatives the bank has been developing alongside traditional banking operations.

Citi’s custody initiative is part of a much larger trend of traditional financial institutions diving deeper into the digital asset space. The movement gained significant momentum following the Securities and Exchange Commission’s approval of Bitcoin and Ethereum exchange-traded funds managed by Wall Street titans like BlackRock and Fidelity. This regulatory green light has prompted numerous top American banks to accelerate their digital asset strategies.

JP Morgan is advancing stablecoin development, while Morgan Stanley is working to enable customers to trade digital coins including Bitcoin, Ethereum, and Solana via its E*Trade platform. The institutional adoption extends beyond trading and custody services. Just last week, a consortium of major global banks including Banco Santander, Bank of America, Barclays, BNP Paribas, Citi, Deutsche Bank, Goldman Sachs, MUFG Bank Ltd, TD Bank Group, and UBS announced they were collectively exploring a “1:1 reserve-backed form of digital money”—essentially a collaborative stablecoin project.

The changing regulatory landscape has played a crucial role in enabling traditional financial institutions to expand their cryptocurrency offerings. President Donald Trump campaigned on supporting the crypto industry and has pushed several crypto-friendly laws during his administration. This represents a significant shift from previous U.S. administrations, where regulators were more cautious and sometimes hostile toward the crypto space.

The current regulatory environment has seen enforcement agencies pull back on crypto-related enforcement actions, creating more favorable conditions for institutional participation. The SEC’s approval of Bitcoin and Ethereum ETFs marked a watershed moment, providing traditional investors with regulated exposure to digital assets through established financial channels. This regulatory clarity has given major banks the confidence to develop and launch crypto services like Citi’s planned custody solution.

The collective movement of major financial institutions into digital assets signals a fundamental shift in how traditional finance views cryptocurrency. From custody services to trading platforms and stablecoin development, banks are building comprehensive digital asset infrastructures that mirror their traditional financial services. This institutional adoption brings increased legitimacy, security, and accessibility to the cryptocurrency market.

For asset managers and institutional clients, services like Citi’s upcoming custody solution address critical concerns around security and regulatory compliance. The ability to store digital assets with established, regulated institutions removes a significant barrier to entry for many traditional investors. As more major banks follow Citi’s lead, the cryptocurrency ecosystem is likely to see increased institutional participation, potentially driving further market maturation and mainstream acceptance of digital assets as a legitimate asset class.