Citigroup prepares to launch its crypto custody service in 2026, marking a significant step for the bank into digital assets. The company’s move aims to expand its custodial role, allowing clients to hold cryptocurrencies on a secure and regulated infrastructure. It signals a growing Wall Street commitment to blockchain-driven financial innovation.

Citigroup Sets Sights on 2026 for Crypto Custody Service

Citi has reportedly unveiled plans to roll out a crypto custody service by 2026, marking a significant moves by a major Wall Street bank into digital assets. The plan would allow the institution to hold cryptocurrencies for clients, expanding its traditional custodial role into the digital frontier.

Biswarup Chatterjee, Citi’s global head of partnerships and innovation for services, told CNBC that the project has been in quiet development for more than two years. He explained that the bank aims to unveil a “credible custody solution” within the next few quarters, designed for asset managers and other institutional investors.

Developing a Trusted Framework for Digital Assets and Expanding DeFi Reach

Citi is taking a hybrid approach to the service, combining internal technology with external partnerships. Some of the custody tools will be built independently by the firm to handle specific functions, while other components will rely on third-party solutions. This approach aims to create a flexible structure that ensures both security and regulatory standards are met.

Custody services, which focus on safely storing client assets, have become a major point of interest as blockchain technology gains more acceptance and institutional demand for crypto grows.

The custody plan is part of its broader blockchain strategy, with the bank’s Citi Token Services already being a step in the path. Citi Token Services is a platform designed to enable instant cross-border payments using tokenized deposits.

Citi is also studying the potential for issuing its own stablecoin, though Chatterjee noted that tokenized deposits remain a more immediate focus. He explained that stablecoins could be particularly useful for clients operating in regions with limited banking infrastructure, helping Citi expand its user base and making sure that they are able to engage in smoother global trade and payments.

Wall Street’s Growing Interest in Digital Assets

The bank’s plans follow a wave of similar activity among large US banks. JPMorgan has been developing its own blockchain-based deposit token, while Bank of America is reportedly exploring a stablecoin initiative. The crypto-progressive environment, with the institution of the GENIUS Acts in the United States enables a thriving landscape for these moves.

Last week, Citi Ventures invested in BVNK, a startup providing stablecoin infrastructure. Further signaling the bank’s deepening involvement in crypto-related innovation is its alliance with 9 other Global banks to develop and issue stablecoins pegged to the currencies of the Group of Seven (G7) nations.

With its planned custody service, Citi is positioning itself at the intersection of traditional finance and blockchain technology. If launched as expected in 2026, the move could establish the bank as one of the first major global custodians to offer clients secure access to digital assets within a fully regulated framework.