Citi is reportedly preparing to roll out a crypto custody service by 2026, joining a growing list of Wall Street institutions expanding into bitcoin and other assets due to a friendlier U.S. regulatory climate.
Biswarup Chatterjee, Citi’s global head of partnerships and innovation for its services division, told CNBC the bank has been developing its custody offering for over two years and plans to bring it to market “in the next few quarters.”
The service would allow Citi to hold native bitcoin and other crypto on behalf of clients, a significant move for one of the world’s largest custodians of traditional financial assets.
“We may have certain solutions that are completely designed and built in-house that are targeted towards certain assets and certain segment of our clients, whereas may we may use a third party, lightweight, nimble solution for other kind of assets,” Chatterjee told CNBC.
Earlier this month, Citigroup analysts issued a bullish 12-month outlook for bitcoin, setting a target of $181,000 and revising their year-end forecast to $132,000. They cited strong inflows of around $7.5 billion and rising institutional demand.
The analysts said they were more positive on bitcoin than ethereum, noting that bitcoin was capturing most of the new capital entering crypto markets and that a supportive U.S. regulatory backdrop could help sustain momentum into 2026.
Banking and holding custody of digital assets
Custody — the safekeeping of client assets — is considered one of the most crucial and challenging aspects of institutional crypto adoption. Just today, JPMorgan said they would not directly hold their clients’ crypto.
While specialist firms like Anchorage and BitGo have dominated the space, large banks see an opening to offer regulated alternatives backed by decades of experience safeguarding securities.
Citi’s crypto embrace comes as Washington has taken steps to provide clearer rules for digital assets through measures such as the GENIUS Act, giving major financial institutions confidence to develop crypto-related products.
Citi’s exploration of custody runs parallel to its broader blockchain efforts, including Citi Token Services, which enables real-time cross-border payments using tokenized deposits.
The bank is also studying 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 advancing similar initiatives As mentioned earlier, JPMorgan recently unveiled plans for a deposit token, while Bank of America is reportedly developing a stablecoin product.
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