EddieJayonCrypto
14 Oct 25
Citibank's planned 2026 crypto custody service signals a seismic shift in finance, as legacy institutions race to secure digital assets amid regulatory shifts and growing mainstream adoption.
**Citi to Launch Crypto Custody Service in 2026 as Traditional Banks Embrace Digital Assets** Citibank is set to enter the digital asset arena with a crypto custody service slated for a 2026 launch, marking a significant step in the mainstream financial industry’s deepening involvement with cryptocurrencies. The announcement, reported by CNBC and confirmed through an interview with Citi’s global head of partnerships and innovation, Biswarup Chatterjee, highlights the bank’s efforts to cater to clients seeking secure storage solutions for digital assets. Chatterjee revealed that Citi has been developing the custody service over the past two to three years, with the goal of offering a “credible custody solution” to asset managers and other clients in the coming quarters. While the bank has not yet responded to requests for comment from *Decrypt*, Chatterjee emphasized that the service would involve Citi holding digital coins and tokens on behalf of clients, a critical function in the evolving crypto landscape. This move aligns with a broader trend of traditional financial institutions accelerating their adoption of digital assets. Following the U.S. Securities and Exchange Commission’s (SEC) approval of Bitcoin and Ethereum exchange-traded funds (ETFs) managed by major players like BlackRock and Fidelity, banks have shown increased interest in the space. Last week, a coalition of top U.S. and global banks—including Santander, Bank of America, Barclays, and Goldman Sachs—announced plans to explore a “1:1 reserve-backed form of digital money,” or stablecoin, further signaling industry-wide momentum. The shift comes amid a changing regulatory environment. Under the Trump administration, crypto-friendly policies have gained traction, with the president advocating for measures to support the industry. This contrasts with earlier regulatory caution and hostility from previous administrations, which had scaled back enforcement actions in the crypto sector. As institutions like Citi invest in infrastructure to serve digital asset clients, the line between traditional finance and cryptocurrency continues to blur. The 2026 launch could position Citi as a key player in a market projected to grow exponentially, reflecting the sector’s increasing legitimacy and the financial world’s recognition of blockchain technology’s potential. With regulatory frameworks still evolving and market dynamics shifting rapidly, Citi’s entry into crypto custody underscores the transformative impact of digital assets on global finance—and the growing confidence of established players in this once-niche field.