Citigroup, a major Wall Street institution, is reportedly exploring the possibility of offering cryptocurrency custody and payment services. This strategic move aims to leverage the growing strength of the crypto market, which has been bolstered by recent regulatory approvals and favorable industry legislation. Biswarup Chatterjee, an executive at Citigroup within its services division, indicated to Reuters that the bank's initial focus would likely be on custody services for "high-quality assets backing stablecoins." This division is responsible for treasury, payments, cash management, and other enterprise solutions for large corporations. Furthermore, Citigroup is considering expanding its custody offerings to include crypto-linked exchange-traded products (ETPs), such as Bitcoin and Ether Exchange-Traded Funds (ETFs). Chatterjee highlighted the necessity of having custody for an equivalent amount of digital currency to support these ETFs. Since their introduction in early 2024, Bitcoin ETFs have seen significant adoption, with US spot Bitcoin ETFs now holding nearly 1.3 million BTC, approximately 6.2% of the total circulating supply. BlackRock's iShares Bitcoin Trust (IBIT) leads this category, with a market value estimated around $88 billion. Ether ETFs have also experienced a surge in inflows, with BlackRock's Ethereum fund rapidly reaching $10 billion in assets. Citigroup has previously engaged with the cryptocurrency space. Earlier this year, the bank collaborated with Switzerland's SIX Digital Exchange to utilize blockchain technology for enhancing private markets through tokenization. Citigroup has shown sustained interest in tokenization, viewing it as a significant "killer use case" in crypto with the potential to reach a $5 trillion market valuation by 2030. Reports also suggest Citigroup was among several Wall Street firms exploring the issuance of a joint stablecoin. A recent report by Ripple, CB Insights, and the UK Centre for Blockchain Technologies identified Citigroup as one of the most active institutional investors in blockchain companies, participating in 18 deals between 2020 and 2024. The current regulatory environment, influenced by past administrations and recent legislative efforts like the GENIUS Act for stablecoins, provides a supportive backdrop for the expansion of traditional financial institutions into the crypto sector. The recent passage of key bills in the House of Representatives further signals growing legislative support for crypto innovation.

Originally published at Cointelegraph on Thu, 14 Aug 2025 21:33:53 GMT

Frequently Asked Questions (FAQ)

Citigroup's Crypto Services

Q: What kind of cryptocurrency services is Citigroup considering offering? A: Citigroup is exploring the possibility of offering cryptocurrency custody and payment services. Q: What will be Citigroup's initial focus for its crypto services? A: The bank's initial focus is expected to be on custody services for "high-quality assets backing stablecoins." Q: Will Citigroup offer custody for crypto ETFs? A: Yes, Citigroup is also exploring custody offerings for crypto-linked exchange-traded products (ETPs), which could include Bitcoin and Ether ETFs. Q: What is Citigroup's past involvement in the crypto space? A: Citigroup has previously partnered with SIX Digital Exchange to leverage blockchain for tokenization in private markets and has shown interest in tokenization as a significant use case in crypto. They were also reportedly exploring issuing a joint stablecoin. Q: How active has Citigroup been in investing in blockchain companies? A: Citigroup has been ranked among the most active institutional investors in blockchain companies, with 18 deals between 2020 and 2024.

Market Context

Q: What is driving Citigroup's interest in crypto services? A: The growing strength of the crypto market, supported by recent regulatory approvals and pro-industry legislation, is driving Citigroup's interest. Q: How popular have Bitcoin ETFs become? A: Bitcoin ETFs have seen surging popularity since their debut in early 2024. Q: What is the current holding of Bitcoin by US spot Bitcoin ETFs? A: According to Bitbo, the 12 US spot Bitcoin ETF issuers collectively hold nearly 1.3 million BTC, which is about 6.2% of the total circulating supply. Q: Which Bitcoin ETF is the largest? A: BlackRock's iShares Bitcoin Trust (IBIT) is the largest, with an estimated market value of around $88 billion. Q: How have Ether ETFs performed? A: After a slow start, Ether ETFs have also experienced a surge in inflows, with BlackRock's Ethereum fund quickly becoming one of the fastest in history to reach $10 billion in assets. Q: What is the current regulatory environment for cryptocurrencies in the US? A: Traditional financial institutions are encouraged by efforts to provide regulatory clarity for the crypto sector, including initiatives from the SEC and the recent passage of the US GENIUS Act. The House of Representatives has also passed several pro-crypto bills.

Crypto Market AI's Take

Citigroup's strategic exploration into cryptocurrency custody and payment services signifies a significant maturation of the digital asset market. As major traditional financial institutions like Citigroup begin to offer regulated services, it signals a growing acceptance and integration of crypto into mainstream finance. This move, particularly their interest in stablecoin-backed assets and crypto ETFs, aligns with the increasing institutional demand for digital assets. At AI Crypto Market, we leverage advanced AI agents and sophisticated algorithms to provide real-time market intelligence and automated trading solutions, helping investors navigate this evolving landscape. Our platform is designed to offer insights into market trends and to facilitate efficient and secure digital asset management, mirroring the institutional shift towards digital asset adoption.

Citigroup weighs crypto custody as ETFs, stablecoins gain momentum

Frequently Asked Questions (FAQ)

Citigroup's Crypto Services

Market Context

Crypto Market AI's Take

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