Citi is reported to be preparing to launch a crypto-custody service by 2026. They will join a growing number of Wall Street Institutions expanding into Bitcoin and other assets because the U.S. regulatory landscape has become more friendly.
Biswarup chatterjee is Citi’s Global Head of Partnerships and Innovation for its Services Division. told CNBC Since over two years, the bank has developed its custody product and is planning to introduce it on the market “in the next few quarters.”
Citi would be able to store native bitcoins and other cryptos on behalf of its clients. This is a major move by one of the largest custodians in traditional financial assets.
“We may have certain solutions that are completely designed and built in-house that are targeted towards certain assets and certain segment of our clients, whereas may we may use a third party, lightweight, nimble solution for other kind of assets,” Chatterjee spoke to CNBC.
Citigroup analyst’s spoke out earlier in the month. issued The bullish forecast for bitcoin is $181,000, and they have revised their end-of-year projection to $132,000. Their reasons for this were strong inflows, estimated at $7.5 billion. They also cited rising demand from institutions.
Analysts said that they are more optimistic about bitcoin than ethereum. They noted that Bitcoin was capturing the majority of new capital coming into crypto markets, and that an encouraging regulatory environment in the U.S. could sustain momentum until 2026.
Digital Assets: Banking and Holding Custody
Custody — the safekeeping of client assets — is considered one of the most crucial and challenging aspects of institutional crypto adoption. JPMorgan Chase announced today that it will be launching a crypto-based banking service. said The company would never directly store the crypto of their clients.
Many banks have seen an opportunity to introduce regulated alternative solutions backed with decades of expertise in protecting securities.
Citi adopts crypto as Washington has taken steps to provide clearer rules GENIUS Act and other measures that encourage the development of crypto products by major financial institutions.
Citi’s blockchain initiatives include its exploration of custody. Citi Token ServicesTokenized deposits allow for real-time, cross-border payment.
The bank is also studying stablecoins — digital tokens typically backed by fiat currency — as tools for global trade and payments in regions with less-developed banking systems.
JPMorgan and other banks have similar initiatives. recently unveiled Bank of America, meanwhile, is developing stablecoins.
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Source: bitcoinmagazine.com
