In a seismic shift for traditional finance, Citibank is accelerating its plunge into the cryptocurrency arena, announcing plans to roll out a full-fledged crypto custody service by 2026. This isn’t just another bank dipping a toe; it’s a calculated dive, born from three years of meticulous development and fueled by skyrocketing institutional demand for secure digital asset storage. As Wall Street giants like BlackRock and Fidelity rake in billions through Bitcoin ETFs, Citi’s move underscores a maturing market where crypto is no longer fringe but foundational.
With Bitcoin hovering above $100,000 amid post-tariff rebounds, this news could ignite the next leg of a multi-trillion-dollar bull run, drawing in asset managers hungry for regulated exposure to native assets like BTC and ETH. The announcement came straight from Citi’s global head of partnerships and innovation, Biswarup Chatterjee, in a recent interview. Chatterjee revealed that the bank has been quietly building this infrastructure since 2022, blending in-house proprietary tech with nimble third-party solutions to handle everything from Bitcoin safekeeping to Ethereum tokenization. “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,” he stated, emphasizing a hybrid model that ensures scalability without compromising on security.
This isn’t speculative fluff; it’s a response to real-world pressures. Institutional inflows into crypto ETFs have exploded. BlackRock’s iShares Bitcoin Trust alone boasts nearly $100 billion in assets under management as of mid-October 2025, mirroring gold’s historical rally but with digital efficiency. What makes this bullish? Custody has long been the bottleneck for mainstream adoption. High-profile hacks and exchange failures, like the $19 billion liquidation frenzy last week, have left institutions wary of self-custody or unregulated platforms. Enter Citi: As one of the world’s largest custodians of traditional securities, with trillions in oversight, the bank brings battle-tested compliance and risk management to the table. Reports confirm this service will enable holding “native digital assets”, actual BTC and ETH on-chain, for clients, not just tokenized proxies.
This regulated gateway could unlock hundreds of billions in sidelined capital, with estimates pointing to $250 billion already circulating in stablecoins. Imagine asset managers at pension funds or hedge giants finally parking serious allocations in crypto without the custody conundrum. That’s not hype; it’s happening, and it’s rocket fuel for prices. The timing couldn’t be more opportune. A pro-crypto U.S. administration has fast-tracked reforms like stablecoin backing mandates using U.S. Treasuries—creating prime opportunities for banks like Citi to step in as custodians. This echoes the SEC’s greenlight for spot Bitcoin and Ethereum ETFs, which has already funneled over $50 billion into the space. Citi’s entry addresses the history of exchange collapses and digital asset theft, positioning it as a risk mitigator in a market rebounding from recent volatility. Peers are following suit: JPMorgan now permits client crypto trading (though not custody), while State Street eyes a similar 2026 rollout. On social media platforms, the buzz is electric—posts from crypto influencers amplify the sentiment, with users hailing it as a huge step for institutional adoption. Bitcoin’s hash rate, a key security metric, has soared to all-time highs, making a sustained 51% attack prohibitively expensive—proof of the network’s fortress-like resilience that pairs perfectly with Citi’s vault. For investors eyeing long-term gains, this convergence screams opportunity.
Citi’s earlier digital assets platform already supports tokenized bonds and trade finance, laying the groundwork for seamless integration. As institutional demand surges, think tokenized private markets crypto’s liquidity could double by 2027, per analyst forecasts. Bitcoin, often dubbed “digital gold,” is capturing 70% of new inflows, outpacing Ethereum in the race for dominance. Altcoins like Solana stand to benefit from the custody clarity, potentially flipping market caps in a broader rally. This isn’t the end of caution—regulatory fine-tuning persists, and volatility lingers. But Citi’s acceleration flips the script from skepticism to strategy. In a world where $1.7 trillion behemoths like Citi bet on blockchain, the message is clear: Crypto’s institutional era is here, and it’s primed for explosive growth. Savvy investors, take note, this could be the custody key unlocking crypto’s trillion-dollar future.
FAQs
Q: When will Citibank officially launch its crypto custody service?
A: Citibank aims for a full launch by 2026, with initial offerings to asset managers rolling out in the coming quarters, as confirmed by executive Biswarup Chatterjee in a recent interview.
Q: What types of digital assets will Citibank custody?
A: The service will focus on native assets like Bitcoin and Ethereum, using a mix of in-house and third-party tech for secure, regulated storage tailored to institutional clients.
Q: Why is this launch bullish for the crypto market?
A: It addresses key custody risks, potentially unlocking billions in institutional capital amid ETF booms and pro-crypto regulations, boosting liquidity and prices.
Q: How does Citibank’s custody differ from crypto exchanges?
A: Unlike exchanges, Citi offers bank-grade regulation and compliance, mitigating hack risks and providing seamless integration with traditional finance portfolios.
Q: Is this part of a broader trend among major banks?
A: Yes—JPMorgan enables crypto trading, and State Street plans a 2026 entry, signaling Wall Street’s collective pivot to digital assets post-SEC ETF approvals.