In October 2025 Citibank (Citi) publicly confirmed plans to launch a regulated cryptocurrency custody service in 2026 . The announcement came via media reports (CNBC/FastCompany) quoting Biswarup Chatterjee, Citi’s global head of partnerships and innovation. Chatterjee said the project has been under development for about two to three years, and that Citi is “hoping that in the next few quarters, we can come to market with a credible custody solution” for its clients . In short, Citi aims to roll out crypto custody offerings sometime in 2026, building on a long-running digital assets initiative.
- Timeline: Reports surfaced Oct. 2025 that Citi plans to introduce crypto custody in 2026 . Chatterjee noted the project started ~3 years ago and expects to deliver a solution “in the next few quarters” (i.e. by 2026) . No exact launch date was given, but the target year is confirmed.
- Announcement context: The news was widely reported (e.g. CNBC/Fast Company/PYMTS) as part of a wave of traditional banks embracing crypto amid new U.S. legislation (the GENIUS Act) and stablecoin regulation . Citi’s statement follows an investment by Citi Ventures in a stablecoin platform (BVNK) , indicating a broader crypto strategy.
Custody Services Details
Citi’s planned service will be an institutional-grade custody platform for digital assets. Chatterjee described it as a way for Citi to hold clients’ “native cryptocurrency” securely . Key expected features include:
- Supported assets: Although Citi has not listed specific coins, reports suggest the focus will be on major cryptocurrencies and their related products. Citi is exploring custody for assets backing stablecoins (e.g. U.S. Treasuries or cash collateral) and for crypto assets underlying ETFs (e.g. Bitcoin, Ether) . In practice, the custody service will likely handle the largest tokens (Bitcoin, Ether, etc.) and stablecoins. Citi’s interest in stablecoins (noted by its investment in BVNK and stablecoin payments pilots ) implies native stablecoins could also be supported.
- Client accounts: The service is targeted at institutional clients – asset managers, funds, corporations – rather than retail banking customers. Citi specifically mentioned offering the custody solution to “our asset management clients and other institutional clients” . There is no indication (yet) of a consumer or small-business crypto wallet; the emphasis is on regulated institutional custody accounts.
- Account types: Citi will provide segregated custody accounts (akin to traditional custodial accounts) where the bank holds the private keys and assets on behalf of clients. This is analogous to how banks hold securities or cash for funds. Reports note the custody solution would involve Citi directly holding the cryptocurrencies on behalf of clients, with all associated safeguards .
- Additional services: Alongside basic custody, Citi is said to be developing “real-time multi-asset solutions” – for example, fiat-to-crypto on-ramps, reserve management, and tokenized deposit services . It is also advancing tokenized cash/ deposits (via its blockchain initiatives) and exploring issuance of its own stablecoin . These features suggest Citi’s custody platform could integrate with tokenized money and stablecoin workflows for institutional clients.
Underlying Technology and Infrastructure
Citi plans to use a hybrid technology stack combining its own blockchain platform and third-party solutions. Key points include:
- CIDAP platform: Citi has built the Citi Integrated Digital Assets Platform (CIDAP) as a blockchain-based infrastructure for tokenized assets . CIDAP is blockchain-agnostic (currently using Hyperledger Besu) and supports issuance, transfer and custody of tokens on both private and public blockchains . This in-house platform likely underpins much of Citi’s digital asset work, including custody.
- In-house vs partnerships: Citi indicated it will develop some custody capabilities internally while partnering for others. Chatterjee said Citi may have “certain solutions that are completely designed and built in-house” for some assets and “use a … third-party, lightweight, nimble solution for other kinds of assets” . In other words, part of the custody tech may be home-grown (potentially via CIDAP), while other parts may leverage external providers or fintech platforms.
- Blockchain partners: While Citi has not named specific vendors for custody, it has shown interest in blockchain and stablecoin technologies. For example, Citi Ventures invested in BVNK (a blockchain-based stablecoin infrastructure) . By analogy, BNY Mellon’s custody platform integrates with Fireblocks and Chainalysis . Citi could similarly integrate known custody/security providers or use open-source tools. The exact partners have not been announced.
- Security and compliance tech: The platform will incorporate enterprise-grade security measures. Chatterjee emphasized the need to “strengthen cyber and operational security for safekeeping and theft prevention” . While not disclosed publicly, this implies multi-signature key management, hardware security modules, and AML/transaction monitoring systems will be core to the offering.
Regulatory and Compliance Considerations
Citi’s crypto custody service will operate under strict banking and securities regulations. Important points include:
- Banking charters and oversight: As a bank, Citi must comply with banking laws (Dodd-Frank, AML/CFT, etc.) when holding crypto. It will likely use an appropriate charter (e.g. trust or custodial banking license) or state supervision to legally offer custody. In the U.S., state trust or federal charters (like OCC guidance) are typically required for crypto custody operations.
- Anti-money laundering (AML) and KYC: Citi has stated that crypto assets “must ensure these assets … were used for legitimate purposes” . This means every coin accepted into custody must be screened for illicit use. Citi will need enhanced AML/KYC controls, transaction monitoring, and compliance systems just like in traditional custodial services.
- Stablecoin regulation: The newly passed GENIUS Act (signed 2025) provides a federal framework for stablecoins and eased banks into the market . Citi has cited this law as a factor encouraging banks to offer crypto services. Custody of stablecoins (and the assets backing them) will be done under these new rules, which require stablecoin issuers to hold high-quality liquid assets (Treasuries/cash) – precisely the kind of assets Citi is considering for custody .
- SEC guidance: Recent SEC staff guidance has clarified that regulated funds may use bank custodians for crypto without triggering enforcement action . This reduces legal uncertainty for Citi’s clients (asset managers). Citi’s announcement follows an SEC letter assuring that advisors using certain bank custodians for crypto “will not” face enforcement under the Investment Advisers Act . Chatterjee noted that such regulatory clarity was “slowly making crypto slide into mainstream finance” .
- Continued oversight: Even under a friendly regulatory environment, Citi must meet ongoing rules. It must comply with U.S. Treasury/FinCEN AML regulations, OFAC sanctions, currency controls, and any international rules when transferring assets cross-border . Client assets must be segregated and insured per banking standards. Given past caution, Citi will emphasize rigorous compliance as a selling point of its custody service.
Expected Market Impact
Industry observers predict Citi’s entry will further legitimize and expand crypto in mainstream finance. Key expected effects:
- Mainstream adoption: Citi’s involvement signals confidence. As Fast Company noted, a Citi-backed custody service could make digital assets “feel less like a gamble and more like a checking account,” bringing crypto into everyday banking parlance . In the words of one analyst, such announcements show “crypto is, finally, sliding into the world of mainstream finance” . More institutions are likely to view crypto as a standard asset class.
- Institutional demand: By providing a regulated custody option, Citi will enable more funds, pensions and corporations to invest in crypto. Over 90% of surveyed institutions already express interest in tokenized assets . A major bank’s offering could unlock trillions in new flows into crypto ETFs, tokenized securities and other digital instruments. In particular, having trusted banks custody the underlying coins will likely boost confidence in Bitcoin/Ether spot ETFs (which now have ~$90B market cap and require secured backing) .
- Competitive response: Citi’s move puts pressure on other banks to follow. Industry commentators expect that when a “leading financial institution” launches crypto custody, others will quickly join . JPMorgan has so far refused custody services, but may be forced to reconsider. Smaller banks (U.S. Bank, PNC, etc.) may expand their crypto offerings to keep pace. In sum, Citi’s entry will likely accelerate a network effect: the more banks join crypto custody, the more normalized and liquid the market becomes.
- Crypto market effects: In the near term, the announcement itself may boost crypto confidence (though it is one of many factors influencing prices). More importantly, over time it could expand the stablecoin and tokenized assets ecosystem. Citi’s support for tokenized deposits and stablecoins (via BVNK, etc.) suggests it will promote dollar-digitized transfers, potentially increasing stablecoin adoption in banking. Overall, the broader crypto market can expect increased institutional participation, more regulated infrastructure, and stronger integration with legacy finance as a result of Citi’s plan.
Comparison: JPMorgan, BNY Mellon, Fidelity, etc.
Several major institutions offer or plan crypto custody, but with different approaches:
- JPMorgan Chase: JPMorgan has resisted direct crypto custody. CEO Jamie Dimon announced that Chase customers will soon be able to buy cryptocurrencies through the bank’s platform, but “we’re not going to custody it” . In short, JPMorgan will act as a crypto broker, showing positions on statements, but will not hold the private keys for clients . This contrasts with Citi’s plan to actually hold assets. JPMorgan’s stance reflects its prior skepticism; its moves so far (e.g. tokenized money markets) focus on crypto-related services without onsite custody.
- BNY Mellon: BNY Mellon – America’s oldest bank – has already launched a digital asset custody platform. In late 2022 it went live (pilot) allowing select institutional clients to hold and transfer Bitcoin and Ether in custody . BNY established a Digital Assets Unit (2021) and partnered with crypto tech firms (Fireblocks for key management, Chainalysis for compliance) to secure its platform . Unlike Citi, BNY’s platform is multi-asset (supporting both fiat and crypto) and is already operational for select clients. However, it is limited to major coins and not yet a full retail offering.
- Fidelity Investments: Fidelity has been a crypto custodian for years. Its subsidiary, Fidelity Digital Assets (FDAS), is a NYDFS-chartered trust company that provides institutional custody and trading since 2018 . FDAS holds crypto for hedge funds, family offices, and other large clients, and the state-approved charter allows it to custody Bitcoin and other coins. More recently, Fidelity expanded into retail: in 2022 it launched Fidelity Crypto for individual brokerage clients, and in 2023 a version for wealth managers . All crypto accounts at Fidelity (retail or institutional) are held via FDAS. In summary, Fidelity offers end-to-end crypto custody and exchange services (institutionally via FDAS, and to advisors/retail via Fidelity Crypto).
- Others: Other Wall Street banks are also moving. U.S. Bank reactivated its crypto custody line (after a pause) in 2025, and PNC offers custody/trading via Coinbase partnership . But JPMorgan’s stance and Citi’s announcement highlight divergent strategies: some banks merely facilitate trading, while others (BNY, Fidelity, Citi) are building full custody infrastructure.
Key takeaway: Citi’s 2026 launch will place it alongside the growing set of institutional custodians (Fidelity, BNY Mellon, etc.) and ahead of banks like JPMorgan (which currently declines to hold crypto). With Citi entering the space, the competitive landscape of crypto custody services is shifting rapidly toward broader institutional adoption .
Sources: Contemporary news reports and press releases from Citi, CNBC, Reuters, Fast Company, and industry media among others provide the basis for these findings.