Wall Street giant Citi Group plans to expand into digital asset services by launching an institutional crypto custody platform in 2026.
According to a report in CNBC, the bank is joining a growing group of financial institutions that are expanding into crypto services following increasing regulatory clarity under the Trump administration.
Financial Institutions Adopting Crypto Infrastructure
The Citi Group head of innovation and partnerships, Biswarup Chatterjee, spoke to CNBC and revealed that the bank had spent the last two or three years developing a program to offer institutional crypto custody solutions, which will be available within the next few quarters. Chatterjee stated:
“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.”
Also read: Standard Chartered Expands into EU with Luxembourg-Based Crypto Custody Services
The decision by Citi Group to delve into the institutional crypto custody field follows a growing wave where traditional financial institutions are gradually adopting crypto-related infrastructure. Among the trailblazers in the field are Standard Chartered and BNY Mellon, which announced similar plans in early 2025.
The developments signal a paradigm shift within the institutional crypto custody industry, where regulated providers are making it easy for funds and large investors to hold digital assets. Currently, many asset managers investing in blockchain-based funds or tokenized bonds need trusted custodians to safeguard their assets.
A Credible Institutional Crypto Custody Solution
The entry of Citi Group is poised to bridge the gap between traditional systems, which have long been trusted custodians, and emerging opportunities. Commenting on the development, Ondo Finance’s @iandebode stated on the company’s X page that there was already a transition from dollars to treasuries, now stocks and crypto ETFs. The statement read:
“Tokenized treasuries went from a billion dollars 18 months ago to now $7 billion, and we expect the same thing to start to occur for tokenized stocks and ETFs.”
Also read: Citigroup Predicts Explosive Growth for Stablecoins by 2030
According to Chatterjee, the goal of Citi Group is not to rush in; instead, they aim to build a credible institutional crypto custody solution that is tailor-made for clients like asset managers. The official revealed that some of the planned solutions would be fully developed in-house, while others could employ agile, third-party technology to address niche assets better.
Conclusion
The development of the institutional crypto custody platform by Citi Group will specifically target institutional clients and asset managers interested in partnering with regulated service providers for their digital asset holdings.
The move occurs as institutional adoption grows and the demand for specialized custody emerges, with traditional banks joining the crypto custody bandwagon. Only time will tell whether traditional banks joining the institutional crypto custody sector will compete effectively with existing custodians like BitGo and Coinbase Custody.
Read more about crypto custody on our website.
Summary
- Citigroup plans to launch an institutional crypto custody platform in 2026.
- The bank joins other financial institutions such as Standard Chartered and BNY Mellon, offering similar services.
- The development, resulting from a favorable regulatory environment in the U.S., has prompted American banks to enter the digital assets sector.
Glossary to Key Terms
Citigroup: A leading global bank for institutions with cross-border needs, a global provider in wealth management and a U.S. personal bank.
Crypto custody: The process of safeguarding a digital asset’s private keys, which are the digital codes that provide access to a cryptocurrency wallet and the funds within it.
Tokenized treasuries: Digital tokens on a blockchain that represent ownership of U.S. government securities, like bills and bonds.
Frequently asked questions about crypto custody solutions
What is crypto custody?
Crypto custody is the method used to protect cryptocurrency by storing the private keys associated with a cryptocurrency wallet.
What does custody involve?
Custody is a service in which a financial institution holds assets on behalf of the client. The service involves assets like Bitcoin and other cryptocurrencies.
How does crypto custody work?
Wallets provided by custodians manage the keys on behalf of the owner.
What does it mean to be a qualified custodian?
A qualified custodian is an institution approved by regulators to hold assets on behalf of clients. For example, banks are qualified custodians.
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