Key Highlights:
- Citigroup may provide custodial services for stablecoins and crypto ETFs.
- The bank is testing blockchain transfers and direct stablecoin settlements.
- Citi could issue its own stablecoin and expand into digital asset custody.
Citigroup Considers Stablecoin and Crypto ETF Custody Services
Citigroup is evaluating providing custody services for assets backing stablecoins and cryptocurrency exchange-traded funds (ETFs).
The bank is also considering payment and conversion services for these assets, according to Biswarup Chatterjee, Citi’s head of innovation. Interest in these products has risen after regulations now require stablecoin issuers to hold low-risk assets, such as U.S. Treasury bonds or cash.
Citi could fill a niche by offering custodianship and accelerated settlements to corporate clients. Such moves could enhance efficiency, strengthen trust, and increase flexibility for businesses operating in the rapidly evolving digital asset landscape.
Innovation, Regulation, and Future Plans
Citigroup is also looking at custody for digital assets linked to investment products, including crypto ETFs—a segment currently dominated by Coinbase. Demand is increasing as spot Bitcoin ETFs, notably BlackRock’s iShares Bitcoin Trust (about $89 billion capitalization), expand.
The bank already offers blockchain-based tokenized dollar payments for 24/7 global transfers and is testing direct stablecoin transfers for instant settlements.
While regulators under the Trump administration have taken a more flexible approach to cryptocurrencies, Citi stresses that all services must comply with anti-money laundering, FX, and cybersecurity requirements.
The bank is considering issuing its own stablecoin, emphasizing strict legal verification and robust security for digital asset storage. This evolving approach positions Citigroup as a potential leader in the intersection of traditional finance and crypto.
