Citi has confirmed that it is working on an institutional digital asset custody service, which it plans to launch in 2026, according to information revealed to CNBC. This initiative, led by Biswarup Chatterjee, global head of partnerships and innovation, is part of the expansion strategy of major US banks into cryptocurrencies, following in the footsteps of JPMorgan and Bank of America. The project, which has been in development for nearly three years, will enable Citi to offer its clients direct custody of cryptocurrencies, stored in native format.
The regulatory framework, which has been relaxed under the Trump administration, through legislation such as the GENIUS Act, has paved the way for these institutional initiatives. Citi is exploring a hybrid approach combining internal development and external partnerships to secure its solutions, while assessing the risks associated with cybersecurity. Conversely, JPMorgan has chosen not to offer custody services, preferring to focus on transactions and derivatives related to digital assets.
At the same time, major US banks are interested in stablecoins and blockchain payment solutions. JPMorgan has launched its "deposit token" on Ethereum, while Citi is developing Citi Token Services to facilitate continuous cross-border transfers. According to Chatterjee, stablecoins could be a key tool in regions where banking systems are underdeveloped. Citi recently invested in BVNK, a company specializing in this technology, confirming its growing commitment to institutional digital finance.
