The U.S. crypto scene is booming with President Donald Trump’s return, as his pro-crypto stance and push for clear regulations are sparking excitement on Wall Street.
In a recent update, Crypto reporter Yueqi Yang has shared insights on the growing involvement of U.S. banks in the crypto services sector. Notably, some large banks are leveraging regulatory changes under President Trump to enter the market, with a focus on cryptocurrency custody.
Citigroup is considering adding crypto custody services, according to sources quoted by The Information. This move follows the bank’s announcement of a successful proof of concept project, which showed its ability to issue and store tokenized private equity funds on a blockchain network.
Citigroup Joins Major Financial Players
Notably, Citigroup, with $2.4 trillion in assets, is joining other major financial institutions in the growing digital asset custody space.
BNY Mellon is expanding its custody services beyond Bitcoin and Ethereum ETFs, while Standard Chartered has rolled out a digital asset custody service in Dubai. HSBC is planning institutional-grade custody offering, and Crédit Agricole and Banco Santander’s joint venture secured crypto custody approval in France.
Meanwhile, State Street, managing $44.3 trillion, partnered with Taurus to offer crypto custody and tokenization services for institutional investors.
While Coinbase is in talks with banks to offer custody and trading services, however, many banks are still waiting for approval from the Federal Reserve and the New York Department of Financial Services, which is delaying their entry into crypto trading, noted The Information reporter Yueqi Yang.
More Banks Eye Crypto Services
Jerome Powell, the Federal Reserve Chair, said U.S. banks with proper risk checks could serve crypto clients. However, many in the industry are concerned about debanking tied to new tech. Recently, Powell has promised to work with Congress to end this issue.
At the same time, more banks are eyeing crypto services. In January, Morgan Stanley-backed E-Trade hinted at offering crypto services, while Goldman Sachs said it would consider digital asset operations if regulations allowed.
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