Citi is reportedly preparing to roll out a cryptocurrency custody service by 2026, joining a growing list of Wall Street institutions expanding into bitcoin and other assets due to a friendlier US regulatory climate.
Biswaroop Chatterjee, Global Head of Partnerships and Innovation at Citi Services, He told CNBC The bank has been developing its custody offerings for more than two years and plans to bring them to market “in the next few quarters.”
The service will allow Citi to hold native bitcoin and other cryptocurrencies on behalf of clients, a significant step for one of the world’s largest custodians of traditional financial assets.
“We may have certain solutions designed and built entirely in-house that target specific assets and a specific segment of our clients, while we may use a third-party, lightweight, intelligent solution for other types of assets,” Chatterjee told CNBC.
Earlier this month, Citigroup analysts issued a 12-month bullish forecast for Bitcoin, setting a target of $181,000 and revising their year-end forecast to $132,000. They pointed to strong inflows of about $7.5 billion and high institutional demand.
Analysts said they were more positive on Bitcoin than Ethereum, noting that Bitcoin was accounting for most of the new capital entering cryptocurrency markets and that a supportive US regulatory backdrop could help maintain momentum into 2026.
Banking and custody of digital assets
Custody – maintaining client assets – is one of the most important and difficult aspects of institutional cryptocurrency adoption. Just today, JPMorgan said they will no longer directly hold cryptocurrencies for their clients.
While niche firms like Anchorage and BitGo dominate the space, larger banks see an opportunity to offer regulated alternatives backed by decades of experience protecting securities.
Citi’s embrace of cryptocurrencies comes as Washington has taken steps to provide clearer rules for digital assets through measures such as the GENIUS Act, giving major financial institutions the confidence to develop cryptocurrency-related products.
Citi’s exploration of custody runs parallel to its broader blockchain efforts, including… City Token serviceswhich allows cross-border payments to be made in real time using token deposits.
The bank is also considering stablecoins – digital tokens typically backed by fiat currency – as tools for global trade and payments in regions with less developed banking systems.
Other banks are offering similar initiatives as previously mentioned, JPMorgan recently revealed plans for a deposit token, while Bank of America is said to be developing a stablecoin product.
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