Bitcoin News Today: Citigroup Considers Crypto Custody and Payment Services Amid Rising Demand for Digital Assets

Citigroup is reportedly considering the introduction of cryptocurrency custody and payment services, signaling a strategic pivot to tap into the growing demand for crypto-linked assets. The Wall Street giant's exploration comes amid a surge in interest in Bitcoin and Ether exchange-traded funds (ETFs) and a favorable regulatory environment for stablecoins in the United States. Biswarup Chatterjee, an executive from Citigroup’s services division, highlighted that the bank is focusing on custody for high-quality assets that back stablecoins, a key infrastructure element for the expanding crypto market.

The bank is also assessing custody solutions for crypto-linked exchange-traded products, including those tied to Bitcoin and Ether. This aligns with the recent performance of Bitcoin ETFs, which have seen significant inflows, with the 12 US spot Bitcoin ETF issuers now holding nearly 1.3 million BTC. BlackRock’s iShares Bitcoin Trust (IBIT) remains the largest, with an estimated $88 billion in assets [1]. Ether ETFs, while slower to gain traction, have also seen substantial inflows, with BlackRock’s Ethereum fund becoming the third-fastest to reach $10 billion in assets [1].

This move is not Citigroup’s first step into the crypto space. Earlier in 2025, the bank partnered with SIX Digital Exchange to leverage blockchain technology in private markets via tokenization. Citigroup has also been among several major banks reportedly exploring the possibility of issuing a joint stablecoin. A recent report by Ripple, CB Insights, and the UK Centre for Blockchain Technologies noted that Citigroup is one of the most active institutional investors in blockchain companies, with 18 deals recorded between 2020 and 2024 [1].

The bank’s interest in custody and payment services reflects broader trends in the financial industry, where regulatory clarity and pro-industry legislation have encouraged traditional institutions to explore crypto offerings. Recent U.S. legislative developments, including the passage of the GENIUS Act, have contributed to a more supportive environment for stablecoins and related financial products. Citigroup’s potential entry into crypto custody could further legitimize the asset class and support continued growth in the crypto-linked financial instruments market.

As the market for crypto ETFs and stablecoins expands, Citigroup’s decision to explore custody services indicates a recognition of the evolving landscape and the increasing role of digital assets in traditional finance. This aligns with broader industry trends and underscores the growing acceptance of crypto as part of the global financial infrastructure.

Source: [1] Cointelegraph - Citigroup Weighs Crypto Custody and Payments (https://cointelegraph.com/news/citigroup-crypto-custody-payments-stablecoins-bitcoin-ether-etfs)