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Citigroup (C) revealed plans to introduce cryptocurrency custody services in 2026, according to an executive interview published by CNBC. Biswarup Chatterjee, global head of partnerships and innovation in Citi’s services division, confirmed the bank has spent the last two to three years building custody infrastructure and expects to take that capability to market soon.

Chatterjee said the development is aimed at servicing asset managers and institutional clients. He emphasized that Citi is in the process of selecting technology partners and deciding how much to build internally versus outsourcing components.

Wall Street moving into crypto? Citi says it’s time

“We have various kinds of explorations … and we’re hoping that in the next few quarters, we can come to market with a credible custody solution that we can offer to our asset managers and other clients,” Chatterjee said.

For years, traditional banks mostly avoided direct exposure to Bitcoin and Ethereum, but evolving regulations such as the GENIUS Act have made it easier for global financial institutions to engage with digital assets.

Citi’s planned system would allow the bank to hold native cryptocurrencies directly for clients, not just tokenized representations.

Chatterjee emphasized that the bank is exploring:

• Full in-house infrastructure for custody and compliance
• Partnerships with third-party blockchain service providers
• Hybrid models combining both approaches

Other large banks differ. JPMorgan CEO Jamie Dimon has stated that JPMorgan will allow crypto investments for clients but will not provide custodial services. 

JUST IN: JPMorgan confirms on CNBC that they will allow clients to trade #Bitcoin and crypto but not yet launch custody services 👀 pic.twitter.com/N2oYWPwwhL

— Bitcoin Magazine (@BitcoinMagazine) October 13, 2025

Citi’s move sets it apart by embracing both custody and asset servicing.

Earlier in 2025, CEO Jane Fraser confirmed plans to explore a Citi-issued stablecoin and expand tokenized deposit services for corporate clients. Today, the bank already enables 24/7 blockchain-based transfers between its New York, London, and Hong Kong offices.

Chatterjee added that as discussions evolve with clients, the bank is exploring use cases that allow stablecoins to flow between accounts or convert into dollars instantly.

Building stablecoins while bracing for a $6.6T banking shift

Banks are steadily integrating blockchain into core operations. JPMorgan has launched a deposit token on Ethereum for round-the-clock settlements, while Citi’s Citi Token Services enables instant cross-border transfers.

Citi views stablecoins as crucial for clients in regions with weaker banking systems and is in the “early stages” of developing one, reinforced by its investment in BVNK. Yet internal caution remains. Analyst Ronit Ghose warned that yield-bearing stablecoins could spark a 1980s-style deposit flight, when money-market funds grew from $4 billion to $235 billion, draining $32 billion from banks in two years.

Major U.S. banking groups share this concern, urging Congress to close a GENIUS Act loophole that lets crypto firms offer yields on stablecoins. The Treasury estimates such products could cause $6.6 trillion in deposit outflows.

Crypto advocates disagree. Coinbase CLO Paul Grewal dismissed the warnings as “an unrestrained effort to avoid competition.”

This was no loophole and you know it. 376 Democrats and Republicans in the House and Senate rejected your unrestrained effort to avoid competition. So did one President. It's time to move on. https://t.co/CGCGxDqKNa

— paulgrewal.eth (@iampaulgrewal) August 13, 2025

Still, Wall Street’s biggest names continue to experiment. Bank of America CEO Brian Moynihan confirmed the firm is developing a stablecoin, while JPMorgan’s Scott Lucas said the bank is “exploring” crypto strategies to meet client demand. 

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