Citigroup Expands Into Stablecoin and Crypto ETF Custody Services

Citigroup is advancing plans to offer custody services for stablecoins and crypto ETFs, signaling a strategic expansion into the digital asset space. The Wall Street giant is reportedly considering a range of services, including secure storage for assets backing stablecoins and for digital assets tied to crypto ETFs, with a focus on meeting the growing demand for institutional-grade solutions. Biswarup Chatterjee, global head of partnerships and innovation at Citigroup, confirmed that stablecoin custody is the immediate priority, with the bank aiming to apply security standards that match or exceed those of leading custodians [2].

The move comes as the market for crypto ETFs continues to gain traction, particularly with the success of products such as BlackRock’s IBIT, which alone manages over $90 billion in assets. Citigroup’s plans suggest it is positioning itself to compete in a space currently dominated by Coinbase, which manages custody for about 80% of U.S. crypto ETFs. By entering the market, Citigroup could leverage its global infrastructure and existing blockchain-based payment systems, which already support tokenized U.S. dollar transfers across international accounts [2].

In addition to custody services, Citigroup is exploring the use of stablecoins to enhance payment efficiency, aiming to enable faster cross-border transactions and streamline global settlements. The bank’s blockchain payment system already facilitates tokenized U.S. dollar transfers, and expanding this capability to include stablecoins could improve liquidity management for clients. Such services would align with broader industry efforts to integrate digital assets into traditional financial systems, as seen in recent partnerships like Ripple’s agreement with BNY Mellon for stablecoin custody [2].

The bank’s strategic shift also reflects a broader trend among global financial institutions, many of which are now treating digital assets as a core component of their offerings. Citigroup’s approach includes not only custody but also payment solutions, underscoring an intent to integrate digital assets more deeply into its infrastructure. The timing of its potential entry into the market aligns with regulatory developments that have brought greater clarity to the stablecoin and crypto ETF sectors, potentially giving Citigroup an early advantage [3].

Citigroup is also reportedly evaluating the possibility of issuing its own stablecoin, which could provide a regulated alternative to existing options and appeal to institutional investors. The bank’s CEO has stated that the firm is considering offering crypto custody solutions, reflecting its long-term interest in the space. As the digital asset market continues to evolve, Citigroup’s move into stablecoin and crypto ETF custody could position it as a key player in a rapidly expanding industry [1].

To support its expansion, the bank plans to strengthen its operations and cybersecurity measures, ensuring the secure handling of digital assets. This includes verifying the legitimacy of all assets before acquisition and enhancing protections to prevent theft and ensure safekeeping. These efforts suggest a commitment to maintaining the trust and compliance standards expected in the institutional market [2].

Sources:

[1] Citigroup Eyes Digital Asset Custody and Payment Services, Strategic Expansion 2025 (https://www.ainvest.com/news/citigroup-eyes-digital-asset-custody-payment-services-strategic-expansion-2508/)

[2] Citigroup Eyes Bold Move Into Stablecoin and Crypto ETF Custody (https://blockonomi.com/citigroup-eyes-bold-move-into-stablecoin-and-crypto-etf-custody/)

[3] Citigroup Considers Offering Crypto Custody Amid Regulatory Clarity (https://coinpedia.org/news/citigroup-considers-offering-crypto-custody-amid-regulatory-clarity/)