Citigroup is gearing up for a deeper dive into the world of crypto and blockchain with plans to offer custody services for stablecoins and cryptocurrency ETFs, as well as payments solutions that could rival other major players in the industry.
Banking Giant Joins the Crypto Rush
In an interview with Reuters, Biswarup Chatterjee, Citi’s global head of partnerships and innovation, confirmed that the bank is exploring ways to tap into the crypto momentum, especially as Washington signals a more pro-crypto regulatory stance.
The move would put Citi alongside other financial heavyweights like Bank of America, Morgan Stanley, JP Morgan, and Fiserv, all of which are rapidly expanding into crypto services.
The recently passed U.S. stablecoin law, along with new regulatory guidelines for banks, has created a clearer framework for digital assets something Citi sees as a green light for expansion.
“Providing custody services for those high-quality assets backing stablecoins is the first option we are looking at,” Chatterjee said.
Leveraging Citi’s Existing Blockchain Experience
Citi isn’t starting from scratch. The bank already operates a tokenized asset solution that uses blockchain to enable U.S. dollar payments and transfers between accounts in London, New York, and Hong Kong running 24 hours a day.
Now, it wants to extend that expertise to stablecoin transactions and custody services for crypto ETFs.
Crypto ETFs: A Growing Opportunity
The ETF space has exploded since the SEC approved the first spot Bitcoin ETFs in 2024. As of now, spot Bitcoin ETFs hold over $158.6 billion in total net assets. The largest BlackRock’s iShares Bitcoin Trust has a massive $91 billion under management. Other major issuers include Fidelity, Grayscale, Ark & 21Shares, and Bitwise.
Chatterjee noted that, “There needs to be custody of the equivalent amount of digital currency to support these ETFs,” highlighting the scale of the opportunity.
Competing with Coinbase’s Dominance
Right now, Coinbase is the undisputed leader in crypto ETF custody, safeguarding more than 80% of the market. But Citi along with State Street, which also announced crypto custody plans earlier this year is positioning itself to challenge that dominance.
The timing aligns with Citi’s February launch of CIDAP, its digital asset platform, which could serve as the backbone for its expanded crypto services.
Bottom Line:
With regulatory clarity improving and institutional demand for crypto products booming, Citigroup’s push into stablecoin payments and ETF custody could make it a major player in the next wave of blockchain adoption and put serious pressure on incumbents like Coinbase.
