Citigroup Explores Stablecoin Custody and Crypto ETF Infrastructure in Major Digital Asset Push

Citigroup Inc., the $2.57 trillion banking behemoth, is positioning itself at the forefront of institutional crypto adoption with plans to offer custody services for stablecoin reserves and infrastructure for cryptocurrency ETFs. The move signals a strategic pivot toward blockchain-based payments and settlements as traditional finance converges with digital assets.

Biswarup Chatterjee, Citi's global head of partnerships and innovation, confirmed the bank is evaluating custody solutions for high-quality assets backing stablecoins—primarily U.S. Treasuries and cash. This initiative aligns with the recently enacted GENIUS Act, which mandates stablecoin issuers to hold SAFE assets as collateral.

The stablecoin market, currently valued at $250 billion by McKinsey, has largely served crypto-native transactions. Citi's entry could catalyze mainstream adoption for cross-border payments and corporate treasury operations. The bank's services division—already handling cash management for multinational corporations—views digital assets as the next evolution in global liquidity solutions.