Citibank launches crypto asset custody in 2026! Large financial institutions fully embrace blockchain
Citi announced the launch of encrypted asset custody services in 2026, and the attitude of large banks towards digital finance has changed significantly.
(Previous summary: Citibank warning: "Global growth will fall below 2%" in the second half of 2025, a situation not seen in more than 10 years)
(Background supplement: Gemini Exchange officially launched IPO: underwritten by Goldman Sachs and Citigroup, stock code GEMI, price per share falling at US$17-19)
Citigroup once again sent a shock bomb to the market. According to Coindesk, the century-old bank plans to officially launch crypto asset custody services in 2026 to lock in the growing demand for compliant custody of native cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) from institutional investors. As soon as the news came out, the market interpreted it as another strong signal that Wall Street's attitude towards digital assets has changed from conservative to positive.
The traditional leader is officially out of custody
Citi started developing related technologies in a low-key manner two or three years ago. Biswarup Chatterjee, global head of partnerships and innovation for the services business, said customer interest in digital assets "has risen from a fringe issue to a must-answer issue." He emphasized that security and compliance are still the two major pain points that institutional investors care about most, and Citi's new products will be designed to address these two needs as a priority. Over the past year, Bank of New York Mellon (BNY Mellon) has taken the lead in providing crypto custody, and the addition of Citi means competition has intensified and the market size is expected to expand further.
Adopting a hybrid approach to simultaneously promote stablecoins
On the technical route, Citi adopts the so-called "hybrid approach", combining self-developed systems and third-party cooperation to respond to the complexity of different chains and token standards. At the same time, Citi is continuing to evaluate the business potential of stablecoins. Chatterjee bluntly stated that in emerging markets where cross-border payment costs are high and traditional banking networks are insufficient, stablecoins have the appeal of filling financial gaps. Citi has launched Citi Token Services to study tokenized deposits, and has also invested in payment startup BVNK through Citi Ventures, demonstrating its long-term ambition for blockchain payments.
Although they are both financial giants, their strategies are different. JPMorgan still focuses on enterprise chain services and has a more conservative attitude towards direct custody of cryptocurrencies; Citigroup has chosen to fully embrace public chain assets. Analysts pointed out that the differences reflect the different judgments of various banks on regulatory risks, technological investment and brand positioning. U.S. regulators have continued to clarify the crypto custody responsibility structure in recent years, allowing large banks to "dare to go further." Once the compliance threshold and insurance mechanism are more complete, it is expected that more mainstream funds will be introduced.
