Crypto Market Capitalization Hits $4 Trillion in July Amid Bitcoin Price Surge

In July, crypto market capitalization reached $4 trillion for the first time, following stablecoin legislation. Bitcoin prices surged past $123K. Crypto-linked stocks saw a mixed response, with some stocks like Coinbase, MicroStrategy, and Riot Blockchain experiencing a rebound. However, others like Marathon Digital Holdings and Hut 8 Mining Corp. struggled to maintain gains.

In July 2025, Citigroup announced plans to expand its financial services to include cryptocurrency custody and payment solutions, particularly for stablecoins and crypto-related exchange-traded products (ETPs). The move comes amidst a significant growth in the crypto market, with Bitcoin prices surging past $123K and the market capitalization reaching $4 trillion for the first time [1].

Citigroup's initiative includes exploring blockchain infrastructure to support the growing demand for crypto ETFs, which have seen substantial investor interest since their launch in early 2024. The bank is also evaluating infrastructure to offer custody services for ETPs tied to cryptocurrencies such as Bitcoin (BTC) and Ether (ETH). These services aim to integrate stablecoins into cross-border trade and digital ETFs, reflecting a broader industry trend of integrating blockchain technologies into mainstream finance [2].

The U.S. regulatory environment has played a significant role in Citigroup's strategy. Recent legislative developments such as the CLARITY Market Structure Act and the GENIUS Act have created a more favorable framework for crypto innovation. Citigroup is likely to proceed cautiously, ensuring that any new services are implemented only after thorough risk assessments and regulatory clarity [3].

In addition to its crypto custody services, Citigroup is also testing real-time tokenized USD transfers via blockchain, aiming to reduce cross-border transaction costs and delays. This aligns with the broader trend of traditional financial institutions adapting to meet the demands of a digital-first investor base [4].

Meanwhile, the crypto market has seen a mixed response to recent developments. While some stocks like Coinbase, MicroStrategy, and Riot Blockchain experienced a rebound, others such as Marathon Digital Holdings and Hut 8 Mining Corp. struggled to maintain gains. This mixed performance underscores the volatility and uncertainty that still characterize the crypto market [5].

As one of the most active institutional investors in blockchain technologies, Citigroup's approach to crypto custody and ETF infrastructure may set a precedent for other global institutions, further integrating digital assets into mainstream finance [6].

References:
[1] https://www.ainvest.com/news/bitcoin-news-today-citigroup-eyes-crypto-custody-stablecoin-services-etf-surge-2508/
[2] https://finance.yahoo.com/news/top-5-analyst-questions-microstrategy-042635226.html
[3] https://www.ainvest.com/news/bitcoin-news-today-citigroup-explores-stablecoin-custody-payment-solutions-regulatory-shift-2508/
[4] https://coingape.com/citigroup-considers-custody-services-for-crypto-etfs-and-stablecoins/
[5] https://www.coinspeaker.com/citigroup-weighs-stablecoin-crypto-etf-custody-amid-upbeat-us-regulations/
[6] https://intellectia.ai/news/stock/citis-crypto-custody-gambit-puts-blockchain-etfs-in-the-spotlight