Global banking giant Citi is reportedly in the final stages of developing a crypto custody service, aiming to roll it out for its asset management clients by 2026. The move marks another major step by Wall Street institutions into digital asset infrastructure but this time with a strong focus on security, regulation, and trust.
A Hybrid Approach to Digital Asset Custody
According to a CNBC report published on October 13, Biswarup Chatterjee, Citi’s Global Head of Partnerships and Innovation, confirmed that the bank has been building its custody architecture for the past two to three years.
Chatterjee revealed that Citi’s crypto custody model will follow a hybrid structure combining both in-house technology and partnerships with third-party firms to create a flexible and secure system capable of holding native cryptocurrencies.
“We may have certain solutions that are completely designed and built in-house that are targeted towards certain assets and certain segments of our clients, whereas we may use a third-party, lightweight, nimble solution for other kinds of assets,”
Biswarup Chatterjee, Citi
This model suggests Citi wants the best of both worlds the control and compliance of proprietary infrastructure, along with the speed and adaptability offered by specialized crypto technology partners.
A Regulated Pathway for Institutional Crypto Storage
Citi’s crypto custody service is designed to fill a growing gap in the market: secure, regulated storage for institutional investors.
The bank’s offering would provide an alternative to the high-profile exchange failures and wallet security issues that have plagued the crypto industry in recent years. By leveraging its reputation as one of the most heavily regulated and trusted financial institutions, Citi aims to give its clients peace of mind when it comes to holding and managing digital assets.
This approach aligns with the growing trend among traditional financial institutions that are cautiously entering the crypto space not by chasing short-term trading profits, but by building critical infrastructure that bridges the gap between traditional finance (TradFi) and decentralized finance (DeFi).
Building on a Broader Blockchain Strategy
Citi’s custody initiative isn’t happening in isolation. It’s part of the bank’s larger blockchain push, which includes exploring tokenized deposits, stablecoins, and blockchain-based payment systems.
Just days before the announcement, reports emerged that Citi had joined a consortium of major global banks including Goldman Sachs, Deutsche Bank, Bank of America, and Santander to research stablecoin applications for cross-border settlements and institutional finance.
Additionally, Citi recently made a strategic investment in BVNK, a U.K.-based firm specializing in stablecoin infrastructure. This investment underscores Citi’s intent to play an active role in building the digital financial “plumbing” that could underpin the next generation of global payments and asset management.
Why It Matters
Citi’s entry into crypto custody highlights a clear industry shift: major banks are no longer standing on the sidelines of blockchain innovation. Instead, they’re laying the groundwork for a regulated, institutionally friendly digital asset ecosystem.
If the rollout proceeds as planned, Citi could bring crypto custody to some of the world’s largest asset managers potentially unlocking a wave of institutional adoption by 2026.
