Bitcoin News Today: Citigroup Expands Digital Asset Custody Amid U.S. Regulatory Shifts

Citigroup is advancing plans to serve as a custodian for digital assets, including stablecoins and cryptocurrency ETFs, under new U.S. regulatory frameworks designed to promote secure custody solutions [1]. This initiative, led by Citigroup’s services division under Biswarup Chatterjee, marks a strategic step for the bank to integrate digital assets into its broader financial infrastructure, particularly in areas such as collateral management and global treasury operations [2].

The bank’s exploration includes custody services for assets that back stablecoins—such as U.S. government bonds and cash equivalents—while also considering custodial roles for digital assets linked to crypto ETFs, including those tied to Bitcoin [3]. This aligns with recent U.S. legislative changes that now allow banks to issue stablecoins backed by risk-free reserves, creating a more structured environment for traditional institutions to participate in the digital asset space [4].

In parallel, Citigroup is experimenting with blockchain-based solutions, such as real-time tokenized U.S. dollar transfers across its global offices in New York, London, and China Hong Kong. These transfers, which operate continuously, represent a shift from traditional banking systems constrained by fixed operational hours. The bank’s next potential step could be enabling clients to move stablecoins between accounts instantly and convert them to U.S. dollars for same-day settlements [5].

With the U.S. Securities and Exchange Commission’s approval of spot Bitcoin ETFs and the rising institutional interest that followed, Citigroup’s entry into this domain could challenge existing players such as Coinbase, which currently manages assets for most crypto ETF providers [6]. This move reflects the increasing demand for regulated, secure infrastructure to support investment vehicles tied to digital assets.

The bank’s CEO has highlighted the strategic importance of tokenized deposits and digital settlement options, signaling a broader shift toward integrating blockchain technology into core banking operations [7]. This aligns with a wider industry trend, as other major financial institutions are also exploring opportunities in the stablecoin and digital asset markets.

Citigroup’s expansion into digital custody services is unfolding in a regulatory environment that emphasizes compliance with anti-money laundering and know-your-customer standards. However, the potential for digital assets to improve financial efficiency and broaden institutional access is evident. As the market continues to evolve, Citigroup’s strategic approach may redefine the role of major banks in the digital finance landscape.

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Source:

[1] Reuters - [Citigroup considers custody and payment services for ...](https://www.reuters.com/business/finance/citigroup-considers-custody-payment-services-stablecoins-crypto-etfs-2025-08-14/)

[2] AInvest - [Citigroup to Enter Crypto Custody and Stablecoin Market ...](https://www.ainvest.com/news/citigroup-enter-crypto-custody-stablecoin-market-industry-shift-2508/)

[3] AInvest - [Citigroup Expands Digital Asset Services Focusing on ...](https://www.ainvest.com/news/citigroup-expands-digital-asset-services-focusing-stablecoin-custody-crypto-etfs-2508/)

[4] Cointelegraph - [Citigroup Weighs Crypto Custody and Payments](https://cointelegraph.com/news/citigroup-crypto-custody-payments-stablecoins-bitcoin-ether-etfs)