Ever since the cryptocurrency and blockchain market has been taking over the world by storm, financial giants and banking systems have also played their role to join the race of digital assets. It is time that the traditional financial system and the age of cryptocurrencies come together to solve the modern problems in the financial world.
And this time, banking giant Citibank is aiming to launch crypto custody in 2026, as crypto regulations have started to favour digital assets after Donald Trump took office earlier this year.
What do we know?
An official at Citi told CNBC that the bank plans to introduce a service for the safekeeping of cryptocurrency assets in 2026 as Wall Street behemoths increase their presence in the digital currency market.
The bank has been working on a crypto custody service for the past two to three years and is making headway, according to Biswarup Chatterjee, global head of partnerships and innovation in the services division at Citi.
“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.
Trump and crypto
Traditional financial institutions have avoided cryptocurrencies like Bitcoin and Ether for a very long time. However, because of new regulations like the GENIUS Act that aim to regulate particular industries, including stablecoins, President Donald Trump’s administration has created a more favourable regulatory climate for digital assets.
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Because of this, conventional financial institutions are now able to offer services and products related to digital assets.
Custody in the cryptocurrency space can take many different forms, such as an exchange for digital assets storing digital currencies or the institution itself exercising self-custody.
A bank can hold assets on behalf of its customers thanks to custodian services. For instance, this may involve stock in businesses. Additionally, businesses that focus only on crypto custody have emerged.
According to Chatterjee, Citi will retain the local cryptocurrency as part of the next custody service. All custody arrangements have dangers, such as the possibility of asset theft due to cyberattacks.
Due to their extensive regulation and track record of asset custody, banks could provide an option.
Citibank and crypto
Things were not always good if we look back at the history of Citibank with crypto assets and the leaders of the industry. Ripple CEO Brad Garlinghouse revealed that he was just severing a long-standing banking arrangement with Citibank due to his prominence in the cryptocurrency space.
However, things are changing now, and other prominent US banks have also come forward to favour their relationship with digital assets.
This year, JPMorgan revealed intentions to create a deposit token that would function as a virtual version of a commercial bank deposit. This would make it possible to shift money around the clock, every day of the week.
What does this mean?
Blockchain is being viewed by banks as a means of swiftly transferring funds in many currencies around the globe, especially during the hours when traditional banking is closed.
Stablecoins are the next possible product they are considering. In order to preserve its value, this kind of digital coin is typically backed by tangible assets like bonds and tied to a fiat currency like the US dollar.
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