Citi’s Crypto Custody Service Set for 2026 Launch Following Three-Year Development Marathon
Wall Street giant finally enters the digital vault race—better late than never for traditional finance's cautious embrace of crypto.
The Three-Year Build
After nearly 36 months of development work, Citigroup is positioning its institutional-grade custody solution to go live in 2026. The timeline puts Citi several laps behind crypto-native custodians but right on schedule for traditional finance's glacial adoption curve.
Institutional Validation
The move signals that major banks can no longer ignore client demand for digital asset security—even if they're approaching it with the speed of a regulated entity writing compliance manuals. Because nothing says 'innovation' like three years of committee meetings and risk assessments.
Wall Street's careful waltz into crypto continues—proving that when it comes to blockchain, traditional finance would rather be fashionably late than recklessly early.
Citi develops its custody system while weighing partnerships
According to CNBC, Chatterjee confirmed that Citi’s upcoming platform will hold native cryptocurrencies on behalf of clients, rather than rely on external exchanges or third-party platforms. That’s a significant decision, given that crypto custody carries security risks including cyberattacks and theft.
But Citi sees opportunity in its own heavily regulated structure, which already has decades of experience managing traditional asset custody for global clients.
Chatterjee said the bank is testing multiple models for the service, some built in-house, others created through partnerships. “We may have certain solutions that are completely designed and built in-house that are targeted towards certain assets and certain segments of our clients,” he explained.
“Whereas we may use a third-party, lightweight, nimble solution for other kind of assets.” He also made it clear that Citi is keeping its options open: “We’re not currently ruling out anything.”
While Citi moves forward, not every Wall Street name is jumping in. Jamie Dimon, CEO of JPMorgan, said earlier this year that his bank WOULD allow clients to purchase crypto but would not act as a custodian. That puts Citi in a smaller group of traditional institutions exploring full-scale crypto custody rather than stopping at token transactions.
Citi expands into stablecoin experiments amid industry competition
Beyond custody, Chatterjee said stablecoins could help clients doing business in countries where traditional banking and payment systems are weak. “We do recognize the fact that there are these pockets in the world where you have a commercial need from our clients to be there and do business,” he said.
Citi already operates Citi Token Services, a system that lets customers move funds across borders instantly using blockchain infrastructure. The platform competes with JPMorgan’s deposit token, which also runs on the ethereum network and allows 24/7 movement of money.
These systems represent a growing push by big U.S. banks to modernize cross-border transactions through blockchain while keeping compliance intact.
Recently, Citi invested in BVNK, a company that builds stablecoin infrastructure. Still, Chatterjee described the effort as being “in the early stages of stablecoin exploration.”
Meanwhile, Bank of America’s Brian Moynihan said in July that his firm is also developing its own stablecoin project, and Scott Lucas, global head of markets digital assets at JPMorgan, said the company is “exploring” the digital currency space too.
“There’s a real opportunity for us to think about how we can offer different services for our clients on the cash side,” Lucas said, “as well as responding to client demand to do things on stablecoins. And that strategy is still emerging, as you can understand, because it’s only really been a few months since we’ve had some more clear regulation around what the opportunity looks like.”
Don’t just read crypto news. Understand it. Subscribe to our newsletter. It's free.
