$2.5T Citigroup Considers Custody Services for Crypto ETFs and Stablecoins

Citigroup, with $2.5 trillion in assets under management, is reviewing plans to provide custody services for crypto ETFs and stablecoins. The move comes as U.S. regulations around digital assets become clearer. The bank is also exploring the launch of its own stablecoin to support instant payments.

Citigroup is considering offering custody services for stablecoins and cryptocurrency exchange‑traded funds (ETFs). Biswarup Chatterjee, Global Head of Partnerships and Innovation in the Services division, confirmed the bank’s interest in the space. He said the bank is focusing on providing custody for high‑quality assets that back stablecoins. The bank also sees potential in supporting ETFs tied to cryptocurrencies like Bitcoin and Ethereum. Chatterjee mentioned BlackRock’s IBIT, which manages over $90 billion in assets. He stated that secure custody is required to store an equivalent amount of crypto assets to support such ETFs. Currently, Coinbase is the custodian for nearly 80% of the U.S. crypto ETFs.

Citigroup’s custody plans aim to meet compliance requirements. The bank said it will only support assets verified to have been used for lawful activities. It is also reviewing ways to enhance security systems to protect digital assets under its custody.

Citigroup is also exploring the use of stablecoins to improve transaction speed. According to Chatterjee, traditional banking systems often take days to complete cross‑border payments. Stablecoins, on the other hand, could allow payments to settle in seconds or minutes.

The bank already supports tokenized U.S. dollar payments using blockchain networks. Chatterjee said the team is building new systems to let clients send stablecoins between accounts or convert them into fiat currency. These services would help clients make fast and efficient payments. Additionally, Citigroup is considering launching its own stablecoin. The bank joins a growing list of institutions looking to enter this space, including JPMorgan and Bank of America. Any stablecoin issued would likely follow a similar model to JPMorgan’s JPM Coin, which is used for institutional payments.

Citigroup is one of several large U.S. banks making moves in the crypto space. In recent weeks, JPMorgan and PNC Bank have entered agreements with Coinbase to offer crypto services to their customers. JPMorgan has also announced plans to offer loans backed by cryptocurrencies. Other banking institutions are also expanding their roles in crypto custody. For example, Ripple recently partnered with BNY Mellon to custody dollar reserves for its RLUSD stablecoin. These steps suggest a growing interest from large financial players in supporting digital assets. While Citigroup continues its review, the bank has emphasized a careful approach. Chatterjee noted that safety, regulation, and legal use are the key concerns as the bank prepares for any possible launch. For now, Citigroup is focused on building the right technology and security frameworks before offering any new services.

$2.5T Citigroup Considers Custody Services for Crypto ETFs and Stablecoins

Citigroup, with $2.5 trillion in assets under management, is exploring custody services for crypto ETFs and stablecoins and may launch its own stablecoin to enable faster cross‑border payments. The bank’s Global Head of Partnerships and Innovation, Biswarup Chatterjee, confirmed interest in providing custody for high‑quality stablecoin assets and supporting ETFs tied to Bitcoin and Ethereum. Coinbase currently holds custody for roughly 80 % of U.S. crypto ETFs. Citigroup’s plans focus on compliance, security and the potential to settle payments in seconds using stablecoins, aligning with moves by JPMorgan, Bank of America and others in the banking sector.