Citi(US:C) CNBCยท2025-10-13 12:08Core Viewpoint - Citi is planning to launch a crypto custody service in 2026, reflecting the growing interest of traditional financial institutions in digital assets [1][3]. Group 1: Citi's Crypto Custody Service - Citi has been developing a crypto custody service for the past two to three years and is making significant progress [1]. - The upcoming custody service will involve Citi holding native cryptocurrencies on behalf of its clients [4]. - The bank is exploring both in-house technology solutions and potential partnerships with third-party providers for its custody service [5][6]. Group 2: Regulatory Environment - The regulatory environment for digital assets in the U.S. has improved under the Trump administration, enabling traditional financial institutions to engage with cryptocurrencies [3]. - New laws, such as the GENIUS Act, aim to regulate specific areas of digital assets, including stablecoins [3]. Group 3: Industry Context - Custody services in the crypto space can take various forms, including exchanges holding digital coins or institutions providing self-custody [4]. - There are inherent risks associated with custody, such as cyberattacks, but banks like Citi are seen as more secure due to their regulatory oversight and history in asset custody [5]. - Not all financial institutions are fully on board with crypto custody; for instance, JPMorgan's CEO has expressed skepticism about the custody strategy [6].