Citigroup is considering launching cryptocurrency custody and payment services, with an initial focus on stablecoin reserves, as the bank looks to tap into momentum from recent U.S. legislative and regulatory developments favoring the industry.
Biswarup Chatterjee, an executive in Citi’s services division — which handles treasury, payments and cash management for large corporates — told Reuters the bank would likely start by safeguarding “high-quality assets backing stablecoins.” The lender is also evaluating custody solutions for crypto-linked exchange-traded products, including spot Bitcoin and Ether ETFs.
“There needs to be custody of the equivalent amount of digital currency to support these ETFs,” Chatterjee said.
U.S. spot Bitcoin ETFs have grown rapidly since their launch in early 2024, now holding nearly 1.3 million BTC, or 6.2% of circulating supply, according to Bitbo. BlackRock’s iShares Bitcoin Trust leads the pack with an estimated $88 billion in assets. Ether ETFs have also accelerated, with BlackRock’s fund becoming the third-fastest in history to reach $10 billion.
Earlier this year, Citi teamed up with Switzerland’s SIX Digital Exchange to use blockchain for tokenizing private market assets. The bank has publicly backed tokenization since 2023, projecting it could represent a $5 trillion market by 2030.
Citi has also been linked to discussions with other major U.S. banks — including JPMorgan, Wells Fargo and Bank of America — on a potential jointly issued stablecoin. A recent report from Ripple, CB Insights and the UK Centre for Blockchain Technologies ranked Citi among the most active institutional blockchain investors, logging 18 deals from 2020 to 2024.
Traditional finance’s renewed interest in crypto has been reinforced by recent U.S. policy steps, including the passage of the GENIUS Act — the country’s first federal stablecoin law — and the CLARITY market structure bill. The House also approved the Anti-CBDC Surveillance State Act in July.
If Citi moves ahead, it would join a growing number of Wall Street firms positioning to serve the surging demand for regulated crypto investment products and payments infrastructure.
