Citigroup Dives into Stablecoin Custody & Crypto Services – The Wall Street Shift You Can’t Ignore

Wall Street's sleeping giant just woke up—and it's holding a crypto wallet.

Why Citigroup's stablecoin play changes everything

The 213-year-old banking titan is quietly building infrastructure to custody stablecoins and process crypto transactions. Not exactly 'apeing into DeFi'—more like a corporate Trojan horse.

The custody arms race heats up

JPMorgan and BNY Mellon already run digital asset vaults. Now Citi wants a slice of the $150B stablecoin market. Because nothing says 'trust' like banks custodying the assets meant to replace them.

Institutional FOMO reaches terminal velocity

BlackRock's ETF, Goldman's derivatives desk, now this. TradFi firms keep 'exploring' crypto like tourists at a strip club—all curiosity until the first bill flies.

The irony? Banks may end up profiting most from the very technology designed to destroy them. Classic Wall Street alchemy—turning disruption into dividends.

Key takeaways

Citigroup is considering a move into crypto custody, focusing on safeguarding reserves for stablecoins and ETFs as institutional interest grows. At the same time, Hong Kong regulators are cracking down on hype.

Citigroup is weighing a MOVE into crypto custody, exploring the possibility of safeguarding collateral for stablecoins and exchange-traded products.

The move is a cautious interest from TradFi as global regulators step up scrutiny of the digital asset space.

Citi eyes custody role

Citigroup is assessing infrastructure for custody and payments related to stablecoins and crypto-linked ETFs, according to a recent Reuters report.

Biswarup Chatterjee, Global Head of Partnerships and Innovation at Citi’s services division, stated:

 “Providing custody services for the high-quality assets backing stablecoins is our first area of focus.”

This initiative aligns with new U.S. legislation that promotes the use of stablecoins for payments and settlements, provided they are backed by secure assets like treasuries or cash.

As a result, Citi sees an opportunity to act as a custodian for these reserves. The bank is also exploring stablecoin payment networks and instant dollar conversions.

With regulatory conditions improving under U.S. President Trump, Citi joins a growing number of traditional financial institutions entering the stablecoin market.

Looking ahead, the bank is even considering issuing its own stablecoin.

Stablecoins add $3B in a week!

Stablecoins saw a net inflow of $3.79 billion this week, pushing the total market cap to $273.49 billion, at press time.

This is a 1.4% rise, according to DeFiLlama data.

Source: DefiLlama

Tether [USDT] maintained its dominance at 60.42%.

The steady capital injection is an obvious sign of rising institutional appetite, with firms like Citigroup now exploring custody roles in the sector.

Stablecoin oversight tightens in Hong Kong

Adding to recent developments in the stablecoin space, Hong Kong regulators have issued a warning to investors about stablecoin-related speculation. They cited sharp price swings caused by unverified licensing claims.

In a joint statement, the Hong Kong Monetary Authority and the Securities and Futures Commission said only a few firms have formally contacted them.

These firms are seeking approval under the city’s new stablecoin licensing regime.

Source: hkma.gov