Citigroup to Play with Crypto ETF Custody? Don't Celebrate Too Soon; This is Just the Financial Giant's 'Gentle Assimilation'
Citigroup announced plans to provide stablecoin and crypto ETF custody and payment services, which seems like good news for the crypto world, but please stay calm: this is not a case of banks 'falling in love with blockchain,' but rather they have realized -- money is here, and they can't be foolishly sidelined.
First, let's look at stablecoin payments. Stablecoins have long become a lifeline in the crypto circle, especially USDT, which sees daily global transfers in the billions, with fast speed and low costs, making it a 'shadow dollar.' Why is Citigroup eyeing it? Because cross-border clearing is the lifeblood of banks. If everyone uses USDT for transactions, then the traditional businesses of Citigroup and Morgan will inevitably shrink. Rather than passively getting hit, it's better to actively incorporate stablecoins into their own systems and take back the keys to transactions.
Now, let's consider crypto ETF custody. How popular are ETFs? Just take Bitcoin ETFs as an example; when the U.S. approves one, funds pour in madly, and institutions scramble for a piece of the pie. The problem is: institutional funds are massive, and they need 'reliable custodians'; otherwise, who is responsible if something goes wrong? Citigroup steps in and says: 'Don't worry, leave the money to me.' This is the competition for interests under the guise of security.
But the issue is, the DNA of banks is not 'decentralization,' but 'absolute control.' They will provide you with security and compliance, but at the same time, they will take away your freedom and transparency. In other words, the 'bankless world' that decentralization enthusiasts hope for may ultimately be wrapped up by banks.
From the user's perspective, if stablecoin payments are truly pushed by Citigroup, the experience would be much smoother and could even be promoted to mainstream e-commerce. But accompanying this is comprehensive regulatory coverage and deep involvement from financial giants. In the future, when you transfer USDT, it's not just about on-chain records, but also bank approvals and KYC oversight.
In a nutshell: Citigroup's entry is not a revolution, but a 'gentle assimilation.' When crypto ideals shake hands with traditional finance, who will lead the rules of the game? The answer is obvious. $BTC
