Citibank to Launch Crypto Custody Services by 2026
- Citibank plans to launch crypto custody services in 2026.
- Launch positions Citibank as a key digital asset player.
- Impact on BTC and ETH anticipated with custody launch.
Citigroup is set to enter the crypto market by launching its crypto custody services in 2026, following extensive preparations, aiming to position itself as a key player in digital assets.
This move signals a growing acceptance of cryptocurrencies within traditional finance, potentially impacting market dynamics, as major banks increasingly integrate digital asset infrastructure.
Citibank is set to launch crypto custody services in 2026 after three years of development, positioning itself within institutional digital asset infrastructure.
This launch is significant as it enhances Citibank’s role in digital asset services, potentially influencing institutional trust in cryptocurrencies.
Citibank’s Hybrid Strategy for 2026 Crypto Custody
Citibank’s planned launch of crypto custody services marks an important expansion into digital assets. Biswarup Chatterjee, Global Head of Partnerships and Innovation at Citi, is leading this initiative.
Biswarup Chatterjee, Global Head of Partnerships and Innovation, Citigroup, confirmed Citi’s hybrid strategy in custody: “We can have certain solutions entirely designed and built in-house targeting certain assets and certain segments of our clients, while we can use a […] third-party solution, lightweight and agile for other types of assets.”
The company intends to use a hybrid strategy, integrating in-house and third-party solutions. This approach aims to cater to diverse client asset types and needs.
Rising Institutional Interest in Bitcoin and Ethereum
Anticipated effects include a rise in institutional interest in Bitcoin and Ethereum, two key assets supported by the custody service. No real-time metrics are available since the service is yet to launch.
Regulatory changes have simplified banks’ involvement in digital assets, now moving forward without prior regulatory notification, highlighting evolving oversight.
Past Custody Launches Indicate Potential Benefits for Citibank
Similar past custody launches by BNY Mellon and U.S. Bank resulted in increased capital flows into crypto, especially for BTC and ETH, indicating potential benefits for Citibank post-launch. Experts suggest a substantial capital inflow into major Layer 1 networks like Bitcoin and Ethereum, potentially stabilizing crypto markets akin to previous cycles.
An Anonymous Industry Analyst stated, “Institutional custody services typically increase the appeal of major Layer 1 networks to traditional finance.”
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