Citibank Joins Crypto Custody Race: 2026 Platform Launch Signals Major Institutional Adoption

Wall Street's crypto embrace accelerates as banking giant Citibank announces digital asset custody platform.

The Institutional Push

Citibank confirms 2026 launch timeline for its cryptocurrency custody solution—joining the institutional gold rush that's reshaping traditional finance. The move positions the banking behemoth against established crypto custodians while signaling mainstream acceptance of digital assets.

Banking's Digital Transformation

Traditional finance finally catches up to what crypto natives knew years ago—digital assets require institutional-grade security. Citibank's entry validates the entire sector while threatening to disrupt the specialized custody providers who've dominated the space.

Wall Street's calculated crypto move—because nothing says innovation like waiting until the infrastructure is proven and regulators are onboard.

Citibank’s Institutional Crypto Custody Vision

According to Biswarup Chatterjee, Citibank’s global head of partnerships and innovation, the bank has been quietly building a hybrid crypto custody system designed to serve institutional investors, asset managers, and hedge funds.

The service will enable clients to securely store native cryptocurrencies like Bitcoin and Ethereum, combining Citi’s in-house security framework with third-party blockchain infrastructure for flexibility and scale.

Chatterjee told CNBC that the project is entering its final stages, stating: “We’re hoping that in the next few quarters, we can come to market with a credible custody solution that meets institutional standards.”

The model echoes a growing industry trend where traditional banks develop their own blockchain tools while partnering with specialized fintech providers to handle on-chain operations and custody logistics.

Stablecoins, Regulation, and Citi’s Blockchain Ambitions

Citibank’s entry comes as the U.S. regulatory climate for digital assets improves under the GENIUS Act, a landmark framework clarifying the treatment of stablecoins and tokenized assets.

This shift has reignited Wall Street’s crypto ambitions, with Citi, JPMorgan, and other global banks exploring blockchain-based payment and settlement systems.

Citi’s CEO Jane Fraser has already confirmed that the bank is testing a Citi-branded stablecoin and tokenized deposit service to support 24/7 settlements for corporate clients.

The bank’s blockchain operations currently enable cross-border transfers between New York, London, and Hong Kong using distributed ledger technology, laying the groundwork for seamless integration between custody, payments, and tokenized assets.

A Broader Institutional Pivot Toward Digital Assets

Citi’s upcoming crypto custody launch mirrors a wider institutional trend as traditional finance moves into the blockchain era. Other global banks like BNY Mellon, Deutsche Bank, and Standard Chartered have rolled out similar offerings, positioning custody as the backbone of institutional crypto adoption.

With $2.57 trillion in assets under custody, Citi’s scale gives it an advantage in bridging traditional finance and decentralized infrastructure.

Analysts say that if executed effectively, the 2026 rollout could make Citi one of the most influential players in institutional crypto, offering clients both security and regulatory assurance in a rapidly evolving digital economy.

Cover image from ChatGPT, BTCUSD chart from Tradingview