Citigroup Explores Stablecoin Custody Amid New U.S. Regulatory Framework

Citigroup is positioning itself at the forefront of institutional crypto adoption with plans to develop stablecoin custody solutions. The move follows recent U.S. legislation authorizing banks to issue dollar-pegged tokens backed 1:1 by Treasuries or cash reserves—a regulatory green light transforming how traditional finance interacts with blockchain infrastructure.

The bank's services division, which already handles treasury operations for multinational corporations, may initially safeguard the collateral underpinning these stablecoins. Biswarup Chatterjee, Citi's Global Head of Partnerships and Innovation, confirmed the exploration of custody services for reserve assets including government bonds—a natural extension of the bank's existing custodial expertise.

This strategic pivot mirrors broader Wall Street momentum. Bank of America and Fiserv are among peers evaluating stablecoin opportunities in a market where McKinsey estimates outstanding tokens now exceed $250 billion. Yet most current usage remains speculative rather than functional—a gap Citi aims to bridge through regulated financial rails.

Concurrently, Citigroup continues advancing its blockchain capabilities. The bank already settles tokenized dollar transfers across global offices using its proprietary Distributed Ledger Technology platform, signaling deeper infrastructure commitments as digital assets enter mainstream finance.