Citi is said to be gearing up to launch a crypto custody service by 2026, aligning with a growing trend among Wall Street firms that are venturing into bitcoin and other cryptocurrencies due to a more favorable regulatory environment in the U.S.
Biswarup Chatterjee, Citi’s global head of partnerships and innovation for its services division, informed CNBC that the bank has been working on its custody solutions for more than two years and aims to launch them “in the next few quarters.”
This service would enable Citi to hold native bitcoin and other cryptocurrencies on behalf of its clients, marking a significant development for one of the largest custodians of traditional financial assets worldwide.
“We might have specific solutions that are entirely designed and developed in-house targeting certain assets and client segments, whereas we may utilize a third-party, lightweight, agile solution for other types of assets,” Chatterjee mentioned to CNBC.
Earlier this month, analysts at Citigroup released an optimistic 12-month outlook for bitcoin, projecting a target price of $181,000 and adjusting their year-end forecast to $132,000. They pointed to robust inflows of approximately $7.5 billion and increasing institutional interest.
The analysts expressed greater optimism for bitcoin over ethereum, highlighting that bitcoin is attracting the majority of the new capital entering the crypto markets and that a supportive regulatory framework in the U.S. could help maintain momentum into 2026.
Banking and Holding Custody of Digital Assets
Custody — the secure storage of client assets — is regarded as one of the most vital and complex elements of institutional crypto adoption. Just today, JPMorgan announced that they would not directly hold their clients’ cryptocurrency.
While specialized firms like Anchorage and BitGo have largely dominated this sector, major banks see an opportunity to provide regulated alternatives backed by decades of experience in asset protection.
Citi’s foray into crypto comes as Washington has taken measures to clarify regulations for digital assets with initiatives like the GENIUS Act, instilling confidence among major financial institutions to develop crypto-related products.
Citi’s exploration of custody aligns with its broader blockchain initiatives, including Citi Token Services, which facilitates real-time cross-border payments using tokenized deposits.
The bank is also investigating the potential of stablecoins — digital tokens generally backed by fiat currency — as instruments for global trade and payments in regions with less developed banking infrastructures.
Other banks are pursuing similar projects. As noted earlier, JPMorgan recently unveiled plans for a deposit token, while Bank of America is reportedly working on a stablecoin product.
