TLDR
Citigroup is considering offering custody services for stablecoins and crypto ETFs.
The bank aims to provide secure storage for assets backing stablecoins and digital assets tied to crypto ETFs.
Citigroup is also exploring payment solutions using stablecoins to enable faster transactions.
The bank’s existing blockchain payment system supports tokenized US dollar transfers globally.
Citigroup plans to strengthen its operations and cybersecurity for its digital asset services.
Citigroup is preparing to expand its digital asset services and plans to offer custody of stablecoins and crypto ETFs. The bank is also studying payment solutions using stablecoins to speed up transactions. These developments come amid new regulatory clarity under the Donald Trump administration.
Custody Plans for Stablecoins and Crypto ETFs
Citigroup aims to provide custody for high-quality assets backing stablecoins and for assets linked to crypto ETFs. Biswarup Chatterjee, global head of partnerships and innovation, confirmed that stablecoin custody is the initial priority. The bank sees growing demand for secure storage of digital assets tied to regulated products.
Furthermore, Citigroup is considering custody services for Bitcoin and Ethereum crypto ETFs. These products, including BlackRock’s IBIT, require secure digital asset storage equivalent to their assets under management. Chatterjee highlighted that IBIT alone manages over $90 billion.
The bank intends to adopt security standards that match or exceed those used by leading custodians of crypto ETFs. It will also verify the legitimacy of all assets before acquisition. Operational and cyber protections will be strengthened to prevent theft and ensure safekeeping.
Positioning in the Growing Crypto ETF Market
Citigroup plans to compete with existing providers serving the crypto ETF market. Coinbase currently manages custody for about 80% of U.S. crypto ETFs. The bank’s move would increase competition in this space.
By offering crypto ETF custody, Citigroup could leverage its global infrastructure. The bank already operates tokenized U.S. dollar payment systems for international transactions. This capability may complement the settlement needs of crypto ETFs.
Other major banks have begun entering the market for crypto ETFs. JPMorgan and PNC Bank recently partnered with Coinbase for crypto-related services. JPMorgan also plans to launch crypto-backed loans.
Expanding Payment Services with Stablecoins
Citigroup is also assessing stablecoins for faster payments, bypassing traditional rails that take several days. Chatterjee said clients could send stablecoins between accounts or convert them instantly to fiat. Such services could streamline global settlements and improve liquidity management.
The bank’s blockchain-based payment system already facilitates tokenized U.S. dollar transfers between accounts worldwide. Stablecoin payments would extend this capability to external transactions. This could make settlement for crypto ETFs more efficient.
Other institutions are adopting similar strategies. Ripple recently partnered with BNY Mellon to custody reserves for its RLUSD stablecoin. Citigroup’s plans would place it alongside peers advancing both stablecoin and crypto ETF infrastructure.
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