$1.7 Trillion Citigroup to Launch Crypto Custody Services in U.S.

Citigroup, one of the world’s biggest financial institutions with more than $1.7 trillion in assets, is preparing to take a major leap into the digital asset space. The bank plans to introduce crypto custody services in the U.S. by 2026, giving institutional investors a safe and regulated way to store and manage cryptocurrencies such as Bitcoin and Ethereum.

For years, traditional banks have watched crypto from the sidelines. But with regulations evolving and investor confidence improving, Citi’s decision shows just how far the industry has come. It’s no longer just startups and fintechs shaping digital finance, now, established giants are stepping in.

Inside Citigroup’s Crypto Custody Plans

According to reports from CNBC and industry insiders, Citigroup has been quietly working on its crypto custody solution for over two years. The service is designed for asset managers, large corporates, and institutional investors who want exposure to crypto without dealing with the complexities of self-custody.

Biswarup Chatterjee, Citi’s Global Head of Partnerships and Innovation, said the bank is exploring a blend of in-house technology and third-party collaborations to develop a secure, scalable platform. The goal is to deliver a custody system that meets strict U.S. regulatory standards while protecting clients from cybersecurity threats and operational risks.

In simple terms, Citi wants to make holding crypto as safe and seamless as storing traditional financial assets.

Market Context and Regulatory Environment

Citi’s move comes at a time when U.S. regulations around digital assets are starting to mature. Government agencies are providing clearer guidelines on custody, taxation, and institutional participation — paving the way for banks to engage more openly with crypto.

Other Wall Street heavyweights such as J.P. Morgan and BNY Mellon have already launched their own crypto custody services. Citi’s entry adds another layer of legitimacy, further closing the gap between traditional banking and the digital asset economy.

The surge in demand for custody solutions shows that institutional investors are ready for regulated access to crypto, but they also want the reliability and trust that comes with established financial institutions.

Why Crypto Custody Matters

Crypto custody involves securely holding private keys and digital tokens on behalf of clients, addressing risks related to theft, hacking, and loss. Institutional-grade custody solutions feature advanced security measures, including multi-party computation (MPC), cold storage, and hardware security modules (HSMs).

What This Means for the Industry

Citi’s entry into crypto custody could be a turning point. As institutional confidence rises, we could see more pension funds, insurance companies, and large corporations adding digital assets to their portfolios.

Moreover, this move may accelerate the integration of crypto into mainstream finance, bridging the gap between decentralized innovation and traditional regulation.

For investors, this could translate into better security, accessibility, and legitimacy for the crypto market as a whole.

If you’re curious about how global regulations are shaping similar moves by other banks, you can read our detailed report on global digital asset governance and regulatory trends.

Disclaimer

This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments and services involve risk and may not be suitable for all investors. Always conduct your own research and consult with a licensed financial advisor before making investment decisions.