Citi plans to debut a crypto custody service in 2026 as Wall Street banks accelerate their expansion into the digital‑asset industry, an executive told CNBC.
Biswarup Chatterjee, Citi’s global head of partnerships and innovation in the services business, said the bank has been developing the custody platform for the past two to three years.
“We have various kinds of explorations ... and we’re hoping that in the next few quarters, we can come to market with a credible custody solution that we can offer to our asset managers and other clients,” Chatterjee said.
Focus on institutional crypto infrastructure
The upcoming service is designed for institutional partners and would involve Citi directly holding native cryptocurrency on behalf of clients. Crypto custody allows institutions to securely store digital assets within a regulated banking framework, similar to traditional securities custody.
Citi is taking a hybrid approach that combines in-house development with external partnerships.
“We may have certain solutions that are completely designed and built in-house that are targeted towards certain assets and certain segment of our clients, whereas we may use a ... third party, lightweight, nimble solution for other kind of assets,” Chatterjee said. “So we’re not currently ruling out anything.”
Regulation and market timing
The bank’s move comes as the U.S. regulatory climate for digital assets evolves. Under President Donald Trump’s administration, new initiatives such as the GENIUS Act aim to establish clear frameworks for stablecoins and broader blockchain-based finance.
Traditional banks have reentered the crypto space following the SEC’s approval of spot Bitcoin and Ethereum exchange-traded funds earlier this year. JPMorgan, Morgan Stanley, and Bank of America are among those exploring blockchain-based settlement tools and tokenization products.
Citi’s broader crypto and blockchain strategy
Citi has been expanding its blockchain capabilities through initiatives like Citi Token Services, which enables instant cross-border payments and liquidity management. The bank is also exploring stablecoin integrations to support clients operating in emerging markets.
“We do recognize the fact that there are these pockets in the world where you have a commercial need from our clients to be there and do business,” Chatterjee told CNBC, adding that the bank remains in the “early stages of the stablecoin exploration.”
Last week, stablecoin infrastructure firm BVNK announced an investment from Citi, signaling the bank’s commitment to deepening its blockchain partnerships.
Outlook for 2026 and beyond
If Citi’s crypto custody service launches as planned in 2026, the bank will join other major global institutions, including BNY Mellon, Standard Chartered, and Deutsche Bank, in offering regulated digital asset custody to institutional clients.
The move positions Citi to play a larger role in bridging traditional finance and the emerging world of blockchain-based financial infrastructure.
Kristian Koch
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