Citi Plans 2026 Crypto Custody Launch for Institutional Clients
Citigroup aims to enter the digital asset custody market by 2026. The banking giant has spent two to three years developing this service. Biswarup Chatterjee, Citi’s global head of partnerships and innovation, stated the bank hopes to launch a credible custody solution for its institutional clients.
The announcement follows an extended development phase, signaling Citi’s commitment to entering the crypto space responsibly. Asset management firms and other institutional clients will benefit from this new offering. The bank positions itself to compete with existing custody providers in a growing market.
Citi Crypto Custody Takes Hybrid Approach to Digital Asset Storage
The bank pursues a hybrid approach, developing some custody tools internally while exploring outside partnerships. This strategy allows Citi to leverage both in-house expertise and specialized external solutions. The custody service will involve Citi holding native cryptocurrency on behalf of clients.
The bank develops a hybrid model that combines in-house systems with third-party partnerships to securely hold native cryptocurrencies. This dual approach provides flexibility in serving different client needs. Some solutions will be completely designed and built within Citi’s infrastructure. Other services may utilize lightweight, nimble third-party platforms for specific use cases.
Institutional Demand Drives Citi’s Crypto Custody Initiative
Citi prepares to launch a crypto custody service by 2026, offering regulated storage for institutional clients’ digital assets. The move addresses growing institutional demand for secure digital asset storage. Banks provide heavily regulated alternatives to pure crypto custodians. Their established reputation in traditional custody services appeals to conservative institutional investors.
Banks may offer an alternative because they are heavily regulated and have a history in the custody business. This regulatory framework and track record provide institutional clients with additional confidence. Asset managers increasingly seek trusted partners for their crypto holdings. Traditional financial institutions fill this gap with their compliance infrastructure and operational experience.
Wall Street Banks Expand Digital Asset Services Amid Regulatory Clarity
Major banks expand into digital asset services as regulatory clarity improves under the Trump administration. The improved regulatory environment encourages traditional financial institutions to launch crypto offerings. Banks can now move forward with digital asset initiatives with greater certainty about compliance requirements.
Citi plans to roll out a crypto custody service in 2026, aiming to offer institutional clients a fully regulated platform for digital assets. This regulated platform distinguishes bank-provided custody from other market options. Institutional clients prioritize regulatory compliance and established oversight. The timing aligns with broader Wall Street adoption of digital assets.
Crypto Custody Market Expands as Traditional Finance Enters
The crypto custody sector continues attracting major financial players. Banks bring substantial resources and regulatory expertise to digital asset storage. There are risks with all forms of custody, such as cyberattacks that lead to theft of assets. However, traditional banks’ security infrastructure addresses many of these concerns.
Citi’s entry marks another milestone in mainstream crypto adoption. The bank’s institutional client base delivers immediate market access for the new service, while asset managers gain additional custody options through established financial partners. This development strengthens the infrastructure supporting institutional crypto investment.
Conclusion
Citi moves decisively into digital asset custody with its 2026 launch plan. The bank’s hybrid approach balances internal development with strategic partnerships. Institutional clients gain a regulated custody option from a traditional financial powerhouse. This initiative reflects broader Wall Street confidence in crypto’s institutional future.
