Citigroup Eyes Crypto Expansion with Custody and Payments Solutions
Citigroup aims to deepen its involvement in the crypto and blockchain sector. The bank is pursuing new opportunities in stablecoin payments and cryptocurrency exchange-traded funds (ETFs) custody.
Joining other major financial players like Bank of America and JP Morgan, Citigroup seeks to capitalize on the growing crypto trend. A top Citigroup executive told Reuters that the bank plans to leverage the current pro-crypto regulatory climate.
One of the bank’s initial steps includes providing custody for stablecoins.”We’re focusing on securing high-quality assets backing thes stablecoins,” said Biswarup Chatterjee, global head of partnerships and innovation at Citigroup.
Citigroup already operates a tokenized asset platform enabling quick U.S. dollar transactions globally. Now, the bank is eyeing the custodial side of crypto ETFs, following the SEC’s approval of the first spot crypto ETF in 2024.
- Bitcoin spot ETFs now hold over $158.6 billion in assets.
- Leading ETFs include the BlackRock iShares Bitcoin Trust with $91 billion in assets.
- Citigroup plans to challenge Coinbase’s 80% share in crypto ETF custodianship.
Citigroup’s entry into this market could diversify the landscape and push boundaries in digital asset custody. Its move reflects the continuous evolution of customary finance adapting to the modern crypto ecosystem.
