Bitcoin News Today: Citigroup Eyes Crypto Custody Expansion Amid Surge in Stablecoin and ETF Demand

Citigroup Inc. is reportedly evaluating the expansion of its services into cryptocurrency custody and payments, with a particular focus on assets backing stablecoins, as Bitcoin and Ether ETFs continue to attract strong inflows from institutional and retail investors [1]. The bank’s services division, which handles treasury, cash management, and enterprise solutions for large corporations, is leading the initiative [1].

Biswarup Chatterjee, a senior executive at Citigroup, noted that the bank is exploring custody services for high-quality stablecoin-backed assets, which are increasingly serving as a bridge between traditional financial systems and digital assets [1]. This move also includes the potential for offering custody for crypto-linked exchange-traded products (ETPs), including Bitcoin and Ether ETFs. According to Chatterjee, such services are essential to underpin the growing number of digital asset-backed ETFs [1].

Bitcoin ETFs have gained significant traction since their market debut in early 2024, with 12 U.S.-based spot Bitcoin ETFs now collectively holding nearly 1.3 million BTC — representing around 6.2% of the total circulating supply [1]. BlackRock’s iShares Bitcoin Trust (IBIT) has emerged as the dominant player, with an estimated market value of around $88 billion [1]. Ether ETFs, though slower to start, have also seen a surge, with BlackRock’s Ethereum fund reaching $10 billion in assets faster than any other fund in history, excluding the largest ones [1].

Citigroup’s interest in crypto custody is not its first step into the digital asset space. Earlier this year, the bank partnered with Switzerland’s SIX Digital Exchange to leverage blockchain technology for private market tokenization [1]. The bank has also been active in blockchain investing, with 18 deals between 2020 and 2024, as reported by Ripple, CB Insights, and the UK Centre for Blockchain Technologies [1].

The firm’s broader engagement with digital assets is being supported by recent regulatory developments in the U.S., including the passage of the GENIUS Act and the CLARITY market structure bill, which aim to bring clarity and structure to the stablecoin and ETP markets [1]. These legislative efforts, alongside Trump-era regulatory initiatives, have helped create a more favorable environment for financial institutions to explore crypto-related services [1].

As stablecoins and ETFs continue to gain traction, the demand for secure and institutional-grade custody solutions is expected to grow. Citigroup’s consideration of expanding into this space reflects a broader trend among global banks to adapt to the evolving financial landscape. Competitors such as JPMorgan and Goldman Sachs have also been integrating blockchain and digital asset services into their offerings [5]. In this context, the ability to provide custody services is becoming a strategic advantage for major financial institutions [3].

Standard Chartered has forecasted that Ethereum could reach $7,500 by the end of 2025, citing ETF inflows, treasury buying, and network upgrades as key drivers [6]. While these projections are speculative, they reflect the growing confidence in the long-term potential of digital assets.

Citigroup’s move also underscores the increasing institutional recognition of crypto as a legitimate asset class. By positioning itself at the forefront of custody and payments innovation, the bank may help shape the future of digital asset infrastructure, particularly as regulatory frameworks continue to evolve.

Source:

[1] Cointelegraph, [https://cointelegraph.com/news/citigroup-crypto-custody-payments-stablecoins-bitcoin-ether-etfs](https://cointelegraph.com/news/citigroup-crypto-custody-payments-stablecoins-bitcoin-ether-etfs)

[2] Yahoo Finance, [https://finance.yahoo.com/news/bullish-soared-first-trading-day-180142300.html](https://finance.yahoo.com/news/bullish-soared-first-trading-day-180142300.html)

[3] MarketScreener, [https://uk.marketscreener.com/news/ether-s-rally-turns-corporate-on-the-road-to-16k-ce7c51d8d18cf721](https://uk.marketscreener.com/news/ether-s-rally-turns-corporate-on-the-road-to-16k-ce7c51d8d18cf721)

[5] FINVIZ.com, [https://finviz.com/quote.ashx?t=C](https://finviz.com/quote.ashx?t=C)

[6] Cointelegraph, [https://cointelegraph.com/tags/banks](https://cointelegraph.com/tags/banks)