Citigroup Advances into Stablecoin and Crypto ETF Custody Services
Crypto 6 days ago
Citigroup is positioning itself at the forefront of digital finance by exploring custody services for stablecoins and crypto ETFs. The newly enacted GENIUS Act enables traditional banks to safeguard stablecoin reserves, prompting Citi to assess secure custody solutions. The bank is also considering issuing its own stablecoin and enhancing blockchain-based payments between global financial hubs like New York, London, and Hong Kong.
Regulatory compliance remains a priority as Citi navigates custody risks and industry calls for stricter oversight. With $2.57 trillion in custody assets, the bank’s digital strategy could reshape how traditional finance integrates with tokenized markets. CEO Jane Fraser confirmed Citi’s focus on tokenized deposits and real-time settlement systems, aligning with client demands for faster, secure transactions.
The SEC’s approval of spot bitcoin ETFs has further fueled Citi’s interest in custody solutions for crypto-backed ETFs. Coinbase currently dominates this space, but Citi’s entry could disrupt the market. The bank’s innovations reflect broader trends toward 24/7 settlement and digital asset adoption, though challenges like AML compliance and cybersecurity persist.