TLDR
- Citigroup is exploring cryptocurrency custody and payment services, focusing first on stablecoin-backed assets
- The bank plans to offer custody services for crypto exchange-traded funds including Bitcoin and Ethereum ETFs
- Bitcoin ETFs now hold nearly 1.3 million BTC, worth about 6.2% of total circulating supply
- This isn’t Citi’s first crypto move – they previously partnered with Switzerland’s SIX Digital Exchange for tokenization
- The expansion comes as Washington signals pro-crypto regulatory changes under Trump administration
Citigroup is planning to enter the cryptocurrency custody and payment services market. The Wall Street bank wants to capitalize on growing demand from stablecoins and crypto exchange-traded funds.
Biswarup Chatterjee, a Citigroup executive, told Reuters the bank’s initial focus would be custody services for high-quality assets backing stablecoins. Chatterjee leads Citigroup’s services division, which handles treasury and payment solutions for large corporations.
The bank is also exploring custody offerings for crypto-linked exchange-traded products. This could include Bitcoin and Ethereum ETFs that have gained popularity since their debut.
Bitcoin ETFs have seen massive growth since launching in early 2024. The 12 US spot Bitcoin ETF issuers now hold nearly 1.3 million BTC, representing about 6.2% of total circulating supply.
BlackRock’s iShares Bitcoin Trust leads the market with an estimated value of around $88 billion. Total net assets in spot Bitcoin ETFs have reached over $158.6 billion.
Growing ETF Market
Ethereum ETFs have also gained momentum after a slow start. BlackRock’s Ethereum fund became the third-fastest in history to reach $10 billion in assets.
Chatterjee explained the need for custody services to support these ETFs. “There needs to be custody of the equivalent amount of digital currency to support these ETFs,” he said.
Currently, crypto exchange Coinbase dominates this market. The platform serves as custodian for over 80% of existing crypto ETFs.
This wouldn’t mark Citigroup’s first entry into cryptocurrency markets. Earlier this year, the bank partnered with Switzerland’s SIX Digital Exchange to use blockchain technology for tokenization.
Previous Crypto Efforts
Citi has been interested in tokenization since 2023. The bank called it the next “killer use case” in crypto and estimated it could reach a $5 trillion market valuation by 2030.
The bank was also among several Wall Street giants exploring a joint stablecoin issuance. Other banks reportedly included JPMorgan, Wells Fargo and Bank of America.
A recent report ranked Citigroup among the most active institutional investors in blockchain companies. The bank made 18 deals between 2020 and 2024.
Citi already offers a tokenized asset solution using blockchain for US dollar payments. The service allows 24-hour transfers between bank accounts in London, New York and Hong Kong.
Traditional financial institutions have been encouraged by Trump administration efforts to provide regulatory clarity. Recent legislation includes the GENIUS Act stablecoin law passed by the House of Representatives.
The House also passed the CLARITY market structure bill and Anti-CBDC Surveillance State Act in July. Citi and State Street first revealed plans to enter crypto custody in February, coinciding with Citi’s launch of the CIDAP digital asset platform.
