Citigroup Explores Stablecoin Custody and Crypto ETF Services Amid Market Growth

Citigroup is advancing its digital assets strategy by exploring custody and payment services focused on stablecoins and crypto-related investment products such as exchange-traded funds (ETFs). The bank is looking to offer secure storage solutions for the digital assets that underpin these instruments, reflecting a broader shift toward integrating blockchain technology into traditional financial infrastructure [1]. This move positions Citi to address a rapidly expanding market driven by institutional demand for digital asset custody and more efficient cross-border payment systems.

The initiative aligns with the growing inflows into Bitcoin and Ether ETFs, which have drawn significant institutional interest. Citigroup's global head of partnerships and innovation, Biswarup Chatterjee, confirmed the bank’s exploration of stablecoin-backed custody services and reiterated earlier discussions about potentially issuing its own stablecoin [2]. The bank already operates a blockchain-based solution that enables real-time transfers using tokenized U.S. dollars between accounts in New York, London, and Hong Kong [3]. This demonstrates Citi’s early-stage development of a system that could support broader stablecoin-based financial infrastructure.

Citi Token Services (CTS), a platform that facilitates real-time treasury and liquidity management using tokenized fiat currencies, has been positioned as a key differentiator. CEO Jane Fraser emphasized its potential for scalability and compliance with emerging U.S. regulatory frameworks, describing it as a “superior offering for our corporate clients” [3]. The bank has also expressed optimism about the proposed GENIUS Act, which could provide a clearer legal framework for stablecoin operations in the U.S. [3].

The move into crypto custody follows broader industry trends, with other major banks such as JPMorgan also positioning stablecoin infrastructure at the core of their long-term strategies. JPMorgan CEO Jamie Dimon highlighted the need for banks to fully engage with the stablecoin industry as FinTechs gain ground [3]. Citigroup’s approach appears to mirror this strategy, aiming to offer instant stablecoin-based payments and custody solutions for digital assets backing ETFs [4].

The timing of the expansion appears strategic. Citigroup has previously suggested that regulatory developments could drive the stablecoin market beyond the overall cryptocurrency ecosystem. According to Ronit Ghose, global head of Citi Institute’s Future Finance think tank, stablecoins could serve as the “cash leg” for tokenized financial assets and facilitate payments for small and large businesses alike [3]. This reflects a growing recognition of the practical applications of stablecoins in both retail and institutional finance.

Citi’s exploration of digital asset custody services underscores its intent to remain competitive in a rapidly evolving financial landscape. As stablecoins and crypto ETFs gain traction, Citigroup’s ability to offer secure, scalable, and compliant solutions could position it as a key player in the digital asset custody space [4].

Source:

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

[2] PYMNTS.com – [https://www.pymnts.com/cryptocurrency/2025/citigroup-considers-offering-crypto-related-custody-services-and-stablecoin-powered-payments/](https://www.pymnts.com/cryptocurrency/2025/citigroup-considers-offering-crypto-related-custody-services-and-stablecoin-powered-payments/)

[3] CoinMarketCap – [https://coinmarketcap.com/academy/article/citigroup-eyes-crypto-custody-services-amid-etf-growth](https://coinmarketcap.com/academy/article/citigroup-eyes-crypto-custody-services-amid-etf-growth)

[4] The Defiant – [https://thedefiant.io/news/tradfi-and-fintech/citigroup-weighs-stablecoin-crypto-etf-custody-services-b965c19f](https://thedefiant.io/news/tradfi-and-fintech/citigroup-weighs-stablecoin-crypto-etf-custody-services-b965c19f)