On May 15, Golden Finance exclusively reported: Global top investment bank Citigroup is plotting to enter the crypto asset custody and payment sector, targeting stablecoin custody, third-party services for crypto ETFs, and US dollar exchange channels. Once the news broke, BTC surged past $32,000, and ETH returned to the $2,000 mark—this is not an ordinary institution's 'trial statement,' but a compliance bomb being dropped into the crypto space by Wall Street veterans!
Take a closer look at the signals behind the news:
Accelerated US Congressional legislation: Recently, the (Stablecoin Transparency Act) is advancing rapidly, and the Trump administration has hinted at relaxing financial regulations, opening legal channels for traditional financial institutions;
A major earthquake in the custody market: Currently, 90% of stablecoin custody is monopolized by Coinbase, and Citibank's entry means that giants are beginning to carve up the cake; compliant custody is no longer exclusive to 'wild paths.'
Countdown to payment scene implementation: Citibank plans to establish a 'stablecoin US Treasury + cash reserve' model, equivalent to giving USDT and USDC a Federal Reserve-level credit endorsement. Once cross-border payment scenarios are established, crypto assets will officially become the 'digital extension' of the US dollar system.
Personal opinion: This is not speculation; it is the financial empire's dimensional strike against Web3.
As someone who has been in the crypto space for 8 years, I can responsibly say: Citibank's actions are not 'layout,' but 'clearing the field.'
On the surface, it seems to be custodial services: in reality, it is building a compliant bridge from 'traditional finance → crypto assets'—when grandpas and grandmas can directly purchase crypto ETFs through Citibank accounts, and when companies can settle cross-border trade with stablecoins, the crypto space will completely shed its 'gray area' label;
The deep logic is about the struggle for power: Coinbase's custody advantage is built on the 'barbaric growth' era, while Citibank holds $24 trillion in custody assets and covers a compliant network in 200 countries. Once its custody stablecoins become the official channel for 'digital dollars,' the survival space for small and medium exchanges will be compressed by 90%;
The most lethal factor is the trust endorsement: When a long-established investment bank is willing to guarantee the security of crypto assets with a century of credibility, the doors of global pensions and sovereign wealth funds will swing wide open; this is the true engine of an 'institutional bull market.'
Three consecutive shocks in the crypto space: These sectors are about to be ignited
The stablecoin sector is being reshuffled: the era of USDT dominance may come to an end! If Citibank issues its own stablecoin, such as a 'digital dollar' pegged to US Treasuries and gold, it will have the backing of Federal Reserve-level liquidity, and both retail and institutional investors will vote with their feet immediately;
The crypto ETF is entering an explosive period: currently, the premium rate of Grayscale's GBTC has plummeted to -15%, the fundamental reason being the lack of compliant redemption channels. Once Citibank establishes a closed loop of 'ETF shares → stablecoins → US dollars,' Grayscale's monopoly will be disrupted, and the ETF scale may exceed $50 billion this year;
Disruptive reconstruction of the payment ecosystem: Imagine Amazon and Walmart integrating Citibank's stablecoin payment system, Southeast Asian cross-border e-commerce directly settling with USDC, and African countries bypassing US dollar hegemony with digital dollars—this is not the future, but a reality that is happening now.
The deadly traps behind compliance
Of course, seasoned traders understand: regulation has always been a double-edged sword. Citibank's entry means:
KYC/AML review upgrades: Anonymous accounts for retail investors will become history, exchanges must open user data to traditional financial institutions, and the privacy coin sector will be directly sidelined;
Policy dependency deepens: Once the Trump administration changes, the regulatory wind may shift suddenly, and Citibank may shrink its business at any time, leading to a liquidity avalanche in the market;
Whale control intensifies: When 90% of compliant custody is concentrated in 3-5 institutions, the cost of market manipulation will drop to rock bottom, and the LUNA crash of 2022 may become a 'minor incident.'
Is it still too late to get on board?
As Citibank's compliance train has already blown its whistle, the crypto space is undergoing the final transformation from 'casino to Wall Street.' In the next three months, focus closely on three signals:
When will the US SEC approve the first spot Bitcoin ETF;
Whether Citibank will publish its own stablecoin white paper;
How regulators in Hong Kong and Singapore are responding.
Finally, let me leave you with a saying: In the eyes of traditional finance, the crypto space has never been a 'revolutionary,' but rather a 'new frontier' waiting to be incorporated. Are you ready to become a shareholder in the compliance era or to be the harvested chives? Let's talk about your views in the comments!