Citigroup is preparing to roll out cryptocurrency custody services in 2026.
The initiative will enable the bank to offer secure storage of native digital assets for institutional clients. Among these assets are Bitcoin and Ethereum, according to CNBC.
Biswarup Chatterjee, Citigroup’s global head of partnerships and innovation for services, leads the initiative. He said the project has been in development for nearly three years.
According to him, the custody platform aims to provide a credible, regulated storage solution for crypto assets. Specifically, it is designed to offer asset managers and other institutional investors secure and reliable access to digital assets.
Building a Hybrid Custody Framework
Citigroup’s upcoming service will use a hybrid model that combines internal development with selective external partnerships. For instance, certain components of the custody system will be built internally. Meanwhile, others may depend on third-party technologies to support a variety of asset types.
Chatterjee emphasized that the bank remains open to multiple approaches as it finalizes the framework.
“We may design certain tools ourselves, while exploring external collaborations for others,” he told CNBC, adding that no specific options have been ruled out.
Regulatory Changes Encourage Bank Participation
The move follows recent regulatory adjustments in the United States that have made it easier for traditional banks to enter the crypto market.
In early 2025, the Federal Reserve, FDIC, and OCC rescinded guidance that had mandated banks to inform regulators before pursuing crypto-related activities.
Consequently, the shift has eliminated major obstacles for established financial institutions, enabling them to explore new opportunities. In response, several Wall Street firms are expanding their roles in crypto custody and blockchain services.
Positive Market Outlook Fuels Momentum
Complementing the custody plans, Citigroup analysts are expressing confidence in the continued strength of Bitcoin (BTC) and Ethereum (ETH).
In a recent CNBC interview, Scott Chronert, Citi’s U.S. equity strategist, predicted that both cryptocurrencies are likely to sustain their upward trajectory into 2026.
Moreover, Chronert noted that Bitcoin and Ethereum now act as hedging tools for investors seeking to diversify beyond equity markets. Thus, this trend highlights the growing sophistication of digital assets in institutional portfolios.
Expanding Focus on Stablecoins and Cross-Border Payments
While advancing its custody plans, Citigroup is also strengthening its involvement with stablecoins. In particular, the bank regards them as key tools for transforming cross-border payment systems.
Chatterjee noted that stablecoins could play a transformative role in emerging markets with limited banking infrastructure, enabling faster and more efficient money transfers.
Reflecting this belief, Citi Ventures, the bank’s venture capital arm, recently made a strategic investment in BVNK, a firm specializing in stablecoin solutions.
Joining a European Stablecoin Consortium
In addition to its U.S. initiatives, Citigroup plans to join a consortium of nine European banks. Together, they are developing a regulated euro-denominated stablecoin, according to Bloomberg.
The group, which includes ING, UniCredit, and DekaBank, intends to launch the token in the second half of 2026.
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