Citigroup Reports Slight Rise in Credit Card Delinquencies, Decline in Charge-Offs Amid Pandemic Levels.

Citigroup's credit card delinquencies rose to 1.42% in July, up from June's rate of 1.38%, but remain below pre-pandemic levels. Net charge-offs declined to 2.07% from 2.12% in the preceding month. Analysts forecast a potential upside for Citigroup stock, with a consensus "Outperform" rating. GuruFocus estimates a significant downside relative to the stock's current trading price.

Citigroup, one of the world's leading financial institutions, is poised to expand its digital asset services, focusing on crypto custody and stablecoin-backed payments for institutional clients. This strategic move, slated to begin in August 2025, aims to provide secure, regulated infrastructure for high-quality stablecoins and crypto-linked ETFs such as those tied to Bitcoin and Ethereum [1].

The expansion is part of Citigroup's broader commitment to digital innovation and market integration. The firm has completed 18 blockchain-related deals since 2020, reflecting its proactive approach to the evolving crypto landscape [1]. This move aligns with broader industry trends, where traditional financial institutions are adapting to meet the demands of a digital-first investor base [2].

The initiative is being led by key figures including Citigroup’s CEO Jane Fraser and senior executive Biswarup Chatterjee, who are evaluating custody services for digital assets that could include both stablecoins and exchange-traded products [3]. The firm is also reportedly exploring custody for assets underlying stablecoins, aligning with broader trends of institutional adoption and the increasing utility of digital assets in payment systems and cross-border transactions [4].

This development could significantly enhance the credibility of cryptocurrencies as investable assets. By offering institutional-grade custody solutions, Citigroup aims to provide secure and scalable infrastructure, potentially attracting greater capital inflows into the market. This aligns with the broader financial industry’s shift toward regulated digital asset services, as evidenced by similar moves from firms like BNY Mellon and Fidelity, which have already expanded their offerings in this space [2].

The firm’s strategy also includes a cautious and regulatory-compliant approach, mirroring the broader trend of traditional financial institutions entering the crypto market with a focus on stability and scalability. This aligns with evolving U.S. policy directions, including signals from the Trump administration toward clearer regulatory frameworks for digital assets [4].

Experts suggest that Citigroup’s involvement could catalyze increased confidence in crypto ETFs and digital asset investments, potentially leading to a more liquid and secure market for institutional investors [3]. The bank’s participation in 18 blockchain-related deals since 2020 further underscores its commitment to digital innovation and its recognition of the long-term potential of blockchain technology [2].

The potential expansion marks a pivotal moment in the integration of digital assets into traditional finance, with Citigroup positioning itself as a key player in the evolving crypto landscape. As the financial sector continues to adapt to the rise of digital assets, the firm’s move could serve as a catalyst for broader market adoption and regulatory alignment [4].

References:
[1] Citigroup Explores Crypto Custody with Focus on Stablecoins and ETFs (https://www.livebitcoinnews.com/citi-explores-crypto-custody-with-focus-on-stablecoins-and-etfs/)
[2] Citigroup Executive Confirms Plans To Offer Stablecoin (https://bitcoinist.com/citigroup-confirms-plans-to-offer-stablecoin/)
[3] Citigroup Considers Crypto Custody Amid Rising ETF And (https://menafn.com/1109931507/Citigroup-Considers-Crypto-Custody-Amid-Rising-ETF-And-Stablecoin-Popularity)
[4] Citigroup Considers Offering Crypto Custody Amid (https://blockchair.com/news/citigroup-crypto-custody-payments-stablecoins-bitcoin-ether-etfs--6fc8daa1c82d2c81)