Citigroup is targeting a 2026 launch for cryptocurrency custody services, marking another major Wall Street institution's push into digital assets as regulatory winds shift in crypto's favor. The move positions Citi to compete directly with early movers like JPMorgan and Goldman Sachs in the rapidly expanding institutional crypto market.
Citigroup just threw its hat into the crypto custody ring, targeting a 2026 launch that could reshape how institutional investors access digital assets. The banking giant's timeline puts it on track to compete with JPMorgan and Goldman Sachs, who've already staked claims in the institutional crypto space.
The timing isn't coincidental. A more favorable regulatory environment under recent policy shifts has emboldened American banks to offer crypto-adjacent services they once avoided like the plague. Where banks previously worried about regulatory backlash, they now see green lights for custody, trading, and even stablecoin development.
Citi's crypto custody play represents more than just another bank jumping on the bandwagon. The institution manages trillions in assets for pension funds, endowments, and corporations - exactly the type of institutional clients driving demand for secure crypto storage solutions. "The infrastructure demand is real," one banking source familiar with Citi's plans tells The Tech Buzz. "These aren't retail day traders anymore."
The bank is also reportedly exploring stablecoin development, a logical next step given its existing expertise in cross-border payments and foreign exchange. Stablecoins have emerged as the backbone of institutional crypto trading, with Tether and Circle's USDC processing hundreds of billions in monthly volume.
Citi's 2026 target date suggests the bank learned from others' mistakes. BNY Mellon announced crypto custody plans in 2021 but faced regulatory headwinds that delayed rollout. State Street similarly struggled with compliance requirements that stretched timelines.
What's different now is the regulatory clarity that's emerged around custody services specifically. The Office of the Comptroller of the Currency has provided clearer guidance on how banks can safely custody crypto assets for clients, removing much of the legal ambiguity that previously spooked compliance departments.
The competitive landscape Citi will enter by 2026 looks vastly different from today's. Coinbase Prime and BitGo currently dominate institutional custody, but traditional banks bring advantages these crypto-native firms can't match: existing client relationships, regulatory infrastructure, and balance sheet strength.
