Citigroup Doubles Down: Banking Giant Eyes Stablecoin & Crypto ETF Expansion in 2025

Wall Street's sleeping giant just woke up—and it's hungry for crypto.

Citigroup joins the institutional stampede into digital assets, exploring stablecoin infrastructure and ETF custody solutions. Because nothing says 'trust the system' like a 209-year-old bank embracing decentralized finance.

The Stablecoin Play

Insiders whisper Citi's testing blockchain rails for corporate clients—because SWIFT fees were too 2020. Expect dollar-pegged tokens to streamline everything from FX to repo markets.

ETF Custody Arms Race

With BlackRock and Fidelity already dominating spot Bitcoin ETFs, Citi's move smells like catch-up. Their vaults could soon safeguard billions in institutional crypto exposure—assuming regulators don't pull another 180.

One thing's clear: when traditional finance finally adopts crypto, they'll make sure to take their usual cut—plus fees.

Competition for Coinbase

Citigroup is among the first major banks to actively explore new crypto services following the recent regulatory shift (e.g., through the GENIUS Act). The initial focus is on the custody of high-quality assets, but in the medium term, the issuance of its own stablecoin is also conceivable. This WOULD not only allow Citigroup to enter the ETF custody business - currently 80% dominated by Coinbase - but also to expand payment solutions via stablecoins.

A key driver behind Citigroup’s MOVE is the recent regulatory developments in the US, which make it easier for banks to enter the stablecoin and crypto ETF sector. New laws create clear standards for the custody of assets backing stablecoins and define technical as well as compliance requirements. This legal certainty enables large banks to offer products that until now have been almost exclusively reserved for crypto-native companies.

Market impact

If Citigroup were to enter the market for stablecoin custody and crypto ETF asset safekeeping, it could significantly intensify competition. Institutional investors who have so far relied on large banks for security or reputational reasons would, for the first time, have access to such services from a source they already trust. This could not only reduce the market share of Coinbase and other service providers, but also pave the way for more banks to develop similar offerings.