Citigroup tests crypto custody and payments

Citigroup weighs entering crypto custody and payment services, starting with stablecoins, amid rising ETF inflows and friendlier regulations.

Citigroup Plans Crypto Custody and Payments Services

Citigroup is weighing plans to offer cryptocurrency custody and payment services, starting with assets that back stablecoins. A Citi executive told Reuters the initial focus would be custody for high quality assets backing stablecoins, with potential later offerings for crypto linked exchange traded products such as Bitcoin and Ether ETFs.

The move would follow Citi's earlier crypto work, including a collaboration with SIX Digital Exchange to tokenize private markets and other blockchain initiatives. Citi has described tokenization as a growth area with long term potential, and the broader US regulatory backdrop, including measures tied to stablecoins and crypto market structure, has supported a more permissive environment for banks testing crypto products.

Citi’s interest shows a broader trend: traditional banks moving from traders to infrastructure providers in crypto. If they build secure custody and trusted payments, they could unlock smoother access for institutions and funds to digital assets.

The path is not risk free. Regulatory shifts, political scrutiny, and the challenge of safeguarding customer assets could influence how fast Citi can scale these services. The test for Citi will be balancing innovation with strong risk controls and clear consumer protections.

Highlights

The coming months will reveal how far legacy banks will push crypto while maintaining trust.