When established Wall Street banks start to seriously engage in cryptocurrencies, the market can be considered truly mature." - Citi Group's latest movements confirm that traditional financial giants are fully invading the crypto world.
I. Citi's Crypto Ambitions
This bank, managing $2.4 trillion in assets, is planning three major initiatives:
1. Custodial Crypto ETF Assets: Directly Challenging Coinbase's Monopoly
2. Issuing Proprietary Stablecoins: Possibly Anchoring to U.S. Treasuries with 'Citi USD'
3. Building a Crypto Payment Network: Using Stablecoins for Instant Cross-Border Transfers
Key Drivers:
Breakthrough in U.S. Stablecoin Legislation
Trump Administration Eases Crypto Regulation
Demand for ETFs from institutions like BlackRock surges
II. Chain Reactions in the Crypto Space
1. Positive for Major Coins
Institutional-level custodial demand will strengthen BTC/ETH's status as reserve assets
2. Impact on Exchanges
Coinbase's custodial business may be siphoned off, but the value of compliant platforms will be reassessed
3. The Stablecoin War
USDT/USDC faces dimensional pressure from 'Banking Stablecoins'
III. Opportunities and Risks for Ordinary People
Opportunities:
The logic of a long-term bull market brought by institutional entry is strengthened
Compliant stablecoins may lower the entry barrier for deposits
Risks:
Banking products may squeeze the survival space of DeFi
Regulatory arbitrage may trigger a new round of policy tightening
"The future winners will definitely be hybrid players who understand both blockchain and Wall Street rules."
I am a seagull, continuously tracking institutional trends in the crypto space.
Want to understand how to position yourself for this wave of institutional dividends? Follow my in-depth analysis series.
