Citigroup Eyes Crypto Custody Play as Regulations Finally Catch Up

Wall Street’s sleeping giant stirs—just as the regulatory fog lifts.

Citigroup’s crypto custody plans signal a tipping point: When banks move, the smart money follows. But let’s not applaud their ‘innovation’ too hard—this is the same crew that needed a decade and explicit rulebooks to touch Bitcoin.

Behind the scenes: The SEC’s recent custody framework gave Citi the cover it craved. Now, they’re racing to reclaim territory lost to upstarts like Coinbase and Fidelity.

The real tell? Watch where they allocate resources. Custody is the gateway drug—trading desks and tokenization playbooks come next.

One cynical footnote: Nothing unshackles institutional ‘vision’ like watching competitors profit first.

Citigroup Inc. (NYSE: C) is considering introducing crypto custody services to its customers. A top executive of Citigroup informed Reuters that the bank is exploring ways to offer custody for stablecoins and spot crypto exchange-traded funds (ETFs).

“Providing custody services for those high-quality assets backing stablecoins is the first option we are looking at,” Biswarup Chatterjee, global head of partnerships and innovation for Citigroup’s services division, said in an interview

Citigroup Adopts Crypto Amid Regulatory Shift

The top-tier U.S. bank, with over $1 trillion in assets under management (AUM), is considering crypto custody services due to a notable regulatory shift. Notably, the Donald TRUMP administration has already ended Operation Chokepoint 2.0, which barred traditional banks from offering crypto-related businesses banking services. 

Additionally, President Trump recently signed into law the GENIUS Act, which oversees the creation of regulated stablecoins. The bank is considering offering custody for crypto ETFs possibly due to its huge backing from BlackRock, which has successfully launched Bitcoin and ethereum spot ETFs.

In mid-July, 2025, Citigroup’s CEO Jane Fraser said that the bank is exploring developing its stablecoin to facilitate seamless payments. 

Market Impact

Citigroup stock has surged 35 percent year-to-date partially fueled by its crypto market exploration. Moreover, the use of blockchain to modernize global financial markets has accelerated in the past year fueled by clear regulatory clarity.

The crypto market is well-positioned to benefit from notable demand from Wall Street behemoths. Furthermore, the wider crypto market uses the Stablecoin sector as a major source of liquidity and LINK to the mainstream financial systems.