TLDR
- Citigroup enters crypto with stablecoin custody and ETF support rollout.
- Citi targets crypto growth with stablecoin services and ETF custody plans.
- Stablecoins go mainstream as Citi offers custody and tokenized payments.
- Citigroup steps into digital assets with focus on custody and compliance.
- Citi boosts crypto play with stablecoin reserves and Bitcoin ETF backing.
Citigroup has entered the digital asset space by planning to offer stablecoin custody and crypto ETF support. This move follows the passage of new U.S. legislation that clears the path for stablecoin use in mainstream finance. The bank is focusing on custody, tokenized payments, and stablecoin-backed transactions for institutional clients.
Stablecoin Custody Services Gain Priority
Citigroup is preparing to offer custody services for assets backing stablecoins like U.S. Treasuries and cash reserves. The newly passed law requires stablecoin issuers to maintain secure reserves, creating a need for trusted custodians. Citi sees this as a chance to expand their core financial services.
Citigroup’s services division handles payments and cash management. The bank aims to ensure the secure safekeeping and administration of backing assets held by stablecoin issuers and guarantee full regulatory compliance across jurisdictions to protect all digital transactions.
With institutional trust and scale, Citigroup targets this market segment to support regulated stablecoin operations. By offering custody of reserve assets, Citi looks to enable the expansion of stablecoin utility. This strategy also aligns with global efforts to modernize payment and settlement systems using blockchain.
Bitcoin ETF Custody Opens New Market
Citigroup is also positioning itself to support digital asset custody for crypto exchange-traded funds (ETFs). Many asset managers launched spot Bitcoin ETFs after regulatory approval in the U.S. last year. These funds require secure digital asset custody equal to their holdings’ market capitalization.
BlackRock’s Bitcoin ETF leads the market with approximately $90 billion in assets under management. Citi plans to offer alternative custody services, challenging crypto-native firms that currently dominate this role. According to its public statement, Coinbase serves as custodian for over 80% of crypto ETF issuers.
Citigroup aims to provide institutions with additional trusted custody options backed by banking-grade infrastructure and compliance. The bank believes secure ETF asset custody is critical for supporting the growth of crypto-linked investment products.
Stablecoin Payments for Faster Transactions
Citigroup is also working on stablecoin payment services to reduce global settlement times. Traditional cross-border payments often take days, but stablecoins can enable near-instant transfers. The bank plans to allow clients to send or convert stablecoins to U.S. dollars for faster payments.
Citi offers tokenized U.S. dollar transfers between New York, London and Hong Kong using a blockchain-based system. The institution develops expanded features allowing seamless stablecoin movement and conversion on demand. Clients have already begun discussing stablecoin use cases with Citi’s services division.
Compliance remains key as Citi builds these systems for international transfers, which require adherence to money laundering and currency control rules. The bank emphasizes ensuring all assets involved in custody or payments were legally acquired and secured.
