Citigroup weighs crypto custody options

Citigroup weighs a custody push for stablecoins and crypto-linked ETFs as regulators tighten scrutiny, and stablecoins record strong weekly inflows.

Citigroup explores stablecoin custody and crypto asset services

Citigroup is examining the infrastructure needed to offer custody and payments for stablecoins and crypto-linked exchange-traded products. Biswarup Chatterjee, Global Head of Partnerships and Innovation within Citi’s services division, says the focus is safeguarding the reserves backing stablecoins. The move fits with policy shifts in the United States that promote stablecoins for payments and settlements when backed by safe assets such as Treasuries or cash, potentially enabling Citi to serve as a custodian for these reserves and even explore issuing its own stablecoin. The article notes that regulatory conditions have shown signs of improvement under the Trump administration, which could ease traditional banks’ entry into the space. Separately, stablecoins themselves saw a notable inflow this week, highlighting ongoing institutional interest in the asset class alongside growing regulatory attention.

Traditional banks dipping a toe into crypto custody signals a turning point for the market. If Citi builds trusted infrastructure to hold stablecoin reserves, it could unlock deeper participation from institutions that crave safety and clear settlement paths. Yet the same regulatory wave that creates opportunity also raises risk: policy changes, political signals, and cross-border scrutiny can shift quickly and affect funding, pricing, and liquidity. Hong Kong’s tightening of asset speculation adds another layer of global caution, reminding readers that the crypto space remains a space of evolving rules rather than settled certainty. The balance between safeguarding assets and enabling innovation will shape how quickly and how boldly Citi, and others, move.

Highlights

Markets move when trust meets custody.