Citi’s Crypto Ambitions Take Shape
Wall Street giant Citigroup is considering cryptocurrency custody and payment services to tap into the growing demand from institutions. The move follows regulatory clarity from Trump-era approvals and recent pro-crypto legislation in the United States.
Biswarup Chatterjee, a Citigroup executive, told Reuters the bank’s first step would likely be custody of “high-quality assets backing stablecoins.” Chatterjee operates within Citi’s services division, which handles treasury, payments and cash management for global corporations.
Custody for ETFs in High Demand
Beyond stablecoins, Citigroup is also evaluating custody services for crypto-linked exchange-traded products, such as Bitcoin and Ether ETFs.
“There needs to be custody of the equivalent amount of digital currency to support these ETFs,” Chatterjee explained.
Bitcoin ETFs have grown rapidly since their launch in early 2024. The 12 US spot Bitcoin ETF issuers now hold nearly 1.3 million BTC, or about 6.2% of Bitcoin’s total supply. BlackRock’s iShares Bitcoin Trust leads the pack, with assets estimated at $88 billion.
Ether ETFs have also accelerated, with BlackRock’s Ethereum fund becoming the third-fastest ETF in history to hit $10 billion in assets under management.
Citi’s Broader Crypto Strategy
This is not Citi’s first step into digital assets. Earlier this year, the bank partnered with Switzerland’s SIX Digital Exchange to leverage blockchain for tokenized private markets. Citi has described tokenization as the next major innovation in finance, estimating the sector could reach $5 trillion by 2030.
Reports have also linked Citi with other US banking giants, including JPMorgan and Bank of America, in discussions on issuing a joint stablecoin.
Between 2020 and 2024, Citigroup made 18 blockchain-related investments, ranking it among the most active institutional backers of the technology.
Legislation Bolsters Wall Street’s Crypto Push
Traditional banks like Citi are benefiting from clearer rules around crypto. Recent US legislation, including the GENIUS Act, the CLARITY market structure bill, and the Anti-CBDC Surveillance State Act, is shaping a friendlier regulatory landscape.
These efforts have fueled a wave of institutional interest, and Citigroup’s latest exploration of custody and payments could mark a new phase in Wall Street’s adoption of digital assets.
