Citi Sets Sights on 2026 for Crypto Custody Launch as Wall Street Accelerates Digital Asset Push
Citigroup is preparing to roll out its long-awaited crypto custody service by 2026, marking another step in Wall Street’s expanding embrace of digital assets.
According to Biswarup Chatterjee, Citi’s global head of partnerships and innovation, the bank has been working on the custody solution for over two years and is now moving closer to market readiness.
“We’ve been exploring different models, and in the coming quarters we aim to deliver a secure and credible custody platform for asset managers and institutional clients,” Chatterjee said.
For years, many traditional banks hesitated to engage with cryptocurrencies such as Bitcoin and Ethereum, but shifting regulations and new federal laws have paved the way for more financial institutions to build digital asset products.
The Role of Custody in Crypto
Crypto custody can take various forms—from self-custody solutions to services provided by exchanges and banks. Custodians safeguard assets on behalf of clients, whether they are traditional securities like stocks or newer digital currencies. With the rising risk of cyberattacks and asset theft, regulated banks like Citi are positioning themselves as trusted alternatives.
Chatterjee explained that Citi is considering a hybrid approach—developing certain custody solutions in-house while also leveraging third-party partnerships for specific asset classes and client segments. “We’re not ruling out any options at this stage,” he noted.
Wall Street’s Divided Approach
Not all major banks are aligned on crypto custody. For example, JPMorgan has allowed clients to trade cryptocurrencies but has been reluctant to offer custody services directly. Still, interest across the financial sector continues to grow as blockchain adoption accelerates.
Stablecoins and Blockchain Payments
Beyond custody, U.S. banks are exploring stablecoins and blockchain-based payment infrastructure. JPMorgan recently introduced a deposit token built on Ethereum to enable 24/7 money transfers, while Citi is developing its own Citi Token Services for cross-border transactions.
Stablecoins—digital currencies pegged to assets like the U.S. dollar—are also on Citi’s radar. Chatterjee said these tokens could play an important role in regions with underdeveloped banking systems, providing clients with faster and more reliable settlement options.
“We see real demand in markets where traditional financial infrastructure is limited,” Chatterjee said, adding that Citi is still in the early stages of stablecoin exploration.
Citi recently reinforced this interest by investing in stablecoin infrastructure provider BVNK, joining other Wall Street players such as Bank of America and JPMorgan in assessing the potential of stablecoins for institutional use.
The Bigger Picture
As Wall Street deepens its digital asset strategy, custody, blockchain payments, and stablecoins are shaping the next frontier of traditional banking. With Citi targeting a 2026 launch, the competition among financial giants for digital currency dominance is only set to intensify.
