Citi bets on blockchain, plans to launch crypto custody by 2026: Report

Global banking major Citigroup (Citi) is preparing to launch a cryptocurrency custody service by 2026, in a move that marks its deepening foray into the digital asset space, CNBC has reported. The initiative is part of a broader push by Wall Street institutions to embrace blockchain-based financial infrastructure.

 

The crypto custody offering—under development for the past two to three years—will cater primarily to asset managers and institutional clients. According to Biswarup Chatterjee, Citi’s Global head of partnerships and innovation for its services division, the product is expected to come to market within the next few quarters.

 

“We have various kinds of explorations underway, and we are hoping to come to market with a credible custody solution for our clients,” Chatterjee told CNBC.

 

Crypto custody, which involves safeguarding digital assets such as Bitcoin and Ethereum, poses inherent risks—particularly those related to cyberattacks and theft. Chatterjee acknowledged these concerns but noted that banks like Citi are well-positioned to address them, given their regulatory experience and track record in traditional asset custody.  ALSO READ | Crypto rebounds after record leveraged unwind on tariff fears; SNX overtops 

The bank’s upcoming offering will include custody for native cryptocurrencies. Citi is evaluating a mix of proprietary technology and partnerships with third-party providers to support the service. 

 

“We may have solutions that are fully built in-house for specific client segments and assets, while for others, we may rely on nimble third-party platforms. We are not ruling anything out at this stage,” Chatterjee added.

 

The custody solution is part of Citi’s broader digital asset strategy. During its Q2 FY25 earnings call in July, CEO Jane Fraser revealed that the bank is also exploring the issuance of a stablecoin—a blockchain-based digital token pegged to a fiat currency. However, Fraser said the bank’s near-term focus remains on tokenised deposits, which are viewed as having more immediate commercial applications.

 

Chatterjee added that stablecoins could play a key role in geographies with underdeveloped financial infrastructure. “We recognise that there are regions where our global clients need reliable digital payment options to transact with local suppliers and customers,” he said. “Stablecoins may offer practical utility in such markets.”

 

While Citi’s stablecoin efforts are still in the exploratory phase, the move underscores the bank’s growing commitment to digital innovation as institutional interest in blockchain and digital assets continues to accelerate.