Highlights of
- Citigroup can provide custody services for crypto ETFs, stablecoins.
- Bank is testing direct stablecoin settlements and blockchain transactions.
- Citi can issue their own stablecoins and enter the digital asset custody market.
Citigroup Considers Crypto ETF and Stablecoin Custody Services
Citigroup has evaluated the possibility of providing custody for stablecoins, cryptocurrency ETFs (exchange-traded fund) and assets that back them.
Biswarup chatterjee is Citi’s Head of Innovation. According to him, the bank will also consider payment and conversion service for these assets. The interest in stablecoins has increased since regulations require issuers of these coins to have low-risk assets such as U.S. Treasury Bonds or cash.
Citi can fill a market niche by providing custodianship to its corporate clients and offering accelerated settlements. These moves would increase efficiency and trust for companies operating in a rapidly changing digital asset environment.
Innovation, Regulation, Future Plans
Citigroup will also consider custody of digital assets that are linked to investments products. This includes crypto ETFs, a market segment currently dominated primarily by Coinbase. The demand for spot Bitcoin ETFs is growing as they expand, including BlackRock’s iShares Bitcoin Trust with its $89 billion in capitalization.
Bank already provides tokenized dollars for global 24/7 transfers, and tests direct stablecoin transfer for instant settlement.
Citi emphasizes that while regulators in the Trump Administration have taken a flexible approach towards cryptocurrencies, all services still must adhere to anti-money laundering requirements, as well as FX and cybersecurity.
Bank is looking at issuing stablecoins, focusing on strict legal verification as well as robust security when storing digital assets. Citigroup’s evolving strategy positions it as a leader at the intersection between traditional finance and cryptocurrency.
