Citigroup is building a regulated crypto custody solution targeted for 2026 to hold stablecoin reserves and institutional digital assets. The bank aims to offer both in‑house and partner-based custody options, prioritizing high-quality reserve assets backing stablecoins as market demand grows.
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Citigroup plans a regulated custody launch in 2026:
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Focus on custody for high‑quality stablecoin reserves and institutional crypto holdings.
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Stablecoin supply has expanded by over $50 billion since the GENIUS Act; banks see growing institutional demand.
Citigroup crypto custody plans: Citi aims to launch regulated custody in 2026, prioritizing stablecoin reserves and institutional assets — read more on COINOTAG.
What is Citigroup’s crypto custody strategy?
Citigroup crypto custody refers to Citi’s planned regulated service to hold digital assets and the high‑quality reserves that back stablecoins. The bank is developing both in‑house and partner-based custody solutions, targeting asset managers and institutional clients with a market entry expected around 2026.
How will Citi support stablecoins and crypto ETFs?
Citi is prioritizing custody for the high‑quality assets that back stablecoins — primarily treasury bills and cash-equivalent reserves mandated by the GENIUS Act. According to public remarks by Biswarup Chatterjee, global head of partnerships and innovation at Citi, the firm has spent multiple years developing the solution and expects to bring a “credible custody solution” to market in the coming quarters. The bank’s approach includes:
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Hybrid architecture: in‑house custody for certain asset types and client segments, alongside lightweight third‑party integrations for others.
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Cross‑border payments integration: Citi Token Services and investments in stablecoin payment platforms such as BVNK indicate a strategic focus on tokenized payment rails.
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Regulatory alignment: emphasis on holding high‑quality reserves in regulated custody to reduce cyber risk and meet compliance expectations for institutional clients.
Frequently Asked Questions
When will Citigroup launch its crypto custody service?
Citi has signaled a market launch target in 2026, with public comments indicating the firm expects to offer a credible custody solution to asset managers and institutional clients within the next few quarters as development continues.
Will Citigroup compete with crypto-native custodians?
Yes, but the space is crowded. Crypto-native firms such as Coinbase and Anchorage Digital (which services 21Shares ETFs) currently hold significant ETF custody share. At the same time, Circle, Tether, and Ripple are pursuing trust licenses to custody reserves themselves. Citigroup’s regulatory pedigree and global client base position it as a contender for institutional mandates.
Analysis and Context
Citigroup’s expansion into custody is a direct response to evolving market structure: the GENIUS Act requires U.S. stablecoin issuers to back tokens with high‑quality liquid assets, increasing the need for regulated custody of those reserves. Market data indicates stablecoin supply growth exceeding $50 billion since the regulatory changes, and industry forecasts suggest ambitious growth for tokenized assets, with a long‑term market cap target cited by some participants near $2 trillion by 2028.
Institutional custody requires rigorous controls — physical, operational, and cyber — and banks bring established practices in segregation, reconciliation, and regulatory reporting. Citi’s public statements emphasize both product flexibility and client segmentation: bespoke, in‑house offerings for certain use cases, and agile third‑party integrations for others. This mirrors a broader trend in which financial incumbents partner with or acquire technology providers while retaining control over critical compliance functions.
Competitive dynamics remain complex. Traditional custodians such as BNY Mellon have expressed interest in crypto custody, while crypto-native companies like Coinbase continue to dominate major Bitcoin and Ethereum ETF custody. At the same time, industry participants including Circle, Tether, and Ripple are seeking state trust licensure to custody their own reserves—reducing reliance on third-party custodians and fragmenting demand.
Key Takeaways
- Regulated custody priority: Citi is prioritizing custody for the high‑quality assets that back stablecoins, aligning with GENIUS Act requirements and institutional risk profiles.
- Hybrid product strategy: Expect a mix of in‑house custody solutions and lightweight third‑party partnerships targeted at different client segments and asset classes.
- Competitive market: While banks bring regulatory trust, crypto-native custodians and stablecoin issuers pursuing trust licenses will intensify competition for reserve custody and ETF mandates.
Conclusion
Citigroup’s move into crypto custody reflects a strategic response to regulatory changes and rising institutional demand for securely held digital assets. By focusing on high‑quality stablecoin reserves and offering flexible custody architectures, Citi aims to capture institutional flows while navigating competition from crypto-native custodians and self‑custody initiatives. Publication and update: Published: 2025-10-15 | Updated: 2025-10-15. Author: COINOTAG.
Sources (plain text): CNBC; GENIUS Act; public statements by Biswarup Chatterjee; market data on stablecoin supply growth; reports and announcements from Circle, Tether, Ripple, BNY Mellon, Coinbase, Anchorage Digital, 21Shares, BVNK.
