What happened? Citi plans to launch crypto custody services in 2026 after several years of preparation.
Citi says it will hold native cryptocurrencies for clients and is exploring both in‑house and third‑party custody solutions. The move builds on other 2025 digital asset efforts, including a possible Citi stablecoin and tokenized deposit services. The bank expects to target asset managers and corporate clients who want secure, always‑on settlement and transfers.
Who does this affect? Asset managers, corporate treasuries, crypto firms, other big banks, and regulators all feel the impact.
Asset managers and corporations that need institutional‑grade custody and instant settlement will get a new trusted option from a global bank. Crypto exchanges and stablecoin issuers now face fresh competition from Citi and a larger bank consortium planning G7‑pegged stablecoins. Smaller banks and regulators could see pressure as deposits, liquidity needs, and market roles shift.
Why does this matter? Citi’s move could speed institutional crypto adoption and materially change market dynamics and liquidity.
A major bank offering custody legitimizes crypto for big clients and could drive large inflows into digital assets and stablecoins, boosting usage and volumes. That growth would heighten competition with current issuers, change how banks fund loans and manage liquidity, and help push payments toward 24/7 tokenized settlement (Bloomberg projects massive stablecoin payment potential). Regulators and market participants will likely react, reshaping rules, custody demand, and balance‑sheet strategies across the industry.