$1.7 trillion Citibank to launch crypto custody services in 2026

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NEW YORK, October 14, 2025 – Citigroup Inc., the $1.7 trillion banking powerhouse, plans to launch its institutional cryptocurrency custody service in 2026. The project marks another step in Wall Street’s growing adoption of blockchain technology. Citi’s goal is to offer asset managers and institutional clients a secure, regulated way to store and manage digital assets such as Bitcoin and Ether.

The custody platform has been in development for nearly three years and reflects how major banks are adapting to client demand. “We hope 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,” said Biswarup Chatterjee, Citi’s global head of partnerships and innovation, in a statement to CNBC.

Citi’s move signals that digital assets have become a lasting part of the financial landscape. The service positions the bank to compete with early movers like BNY Mellon and State Street, which already hold cryptocurrencies for institutional clients. Moreover, analysts say the decision shows growing confidence that crypto infrastructure can meet the same compliance standards as traditional finance.

The planned model combines Citi’s in-house systems with selected third-party providers. Internal teams will manage client verification, risk control, and safekeeping, while outside technology partners will extend blockchain connectivity. “Some solutions are built completely within Citi,” Chatterjee said. “Others use external networks to deliver flexible, lightweight options that meet our compliance goals.”

DEVELOPING: $1.7 trillion Citibank to launch Bitcoin & crypto custody services in 2026.

IT’S HAPPENING!!! pic.twitter.com/mF249SRFF2

— Simply Bitcoin (@SimplyBitcoinTV) October 13, 2025

As a result, the design reflects Citi’s effort to balance innovation and security. Institutional investors often hesitate to hold crypto because of the lack of reliable custodians. However, a trusted global bank can solve that concern and attract cautious capital that has been waiting to enter the market.

The custody platform also forms part of Citi’s wider digital asset strategy. It builds on Citi Token Services, a blockchain-based system that enables cross-border payments and trade finance. In addition, the new service will allow clients to access tokenized assets and cryptocurrencies through a single infrastructure.

Industry analysts see the timing as favorable. Bitcoin and Ether prices have stabilized after a volatile year, and regulators are issuing clearer rules for digital assets. Consequently, institutional funds are returning to the market, but they prefer partners with strict compliance and strong capital reserves. Citi’s entry meets both conditions and could accelerate mainstream adoption.

Even so, specific details on supported assets and rollout regions remain undisclosed. Early indications suggest Citi will begin with a pilot program for major clients before expanding globally in 2026. The scope of the offering will depend on regulatory approvals in the United States and abroad.

Furthermore, Citi’s participation carries weight beyond finance. It adds credibility to a sector that is still rebuilding trust after years of volatility and high-profile exchange failures. By entering the space, one of the world’s largest banks sends a clear message that digital assets are moving from the edges of finance into its core.

For the industry, the launch represents a turning point. Traditional banks are no longer competing with crypto firms from the sidelines. Instead, they are integrating blockchain directly into their services. Citigroup’s entry blends legacy financial discipline with digital innovation, bridging two worlds that once seemed incompatible. Learn more about the best crypto trading platforms here.

Recap:

• Citigroup will launch its crypto custody service in 2026 for institutional clients.
• The project combines in-house systems with trusted third-party blockchain partners.
• It expands Citi’s digital asset strategy, following its Citi Token Services initiative.
• The service aims to attract institutional investors seeking regulatory security.
• Analysts expect Citi’s entry to boost credibility and accelerate crypto adoption worldwide.