Citi Plans Crypto Custody Service Launch for 2026

Core Insights - Citi is planning to launch a cryptocurrency custody service next year, marking significant progress on a project initiated three years ago [2][3] - The custody service will involve Citi holding native cryptocurrencies and aims to provide a credible solution for asset managers and other clients [2][3] - The service will utilize both in-house developed technology and third-party partnerships, indicating a flexible approach to asset custody [3][4] Industry Context - The custody of crypto assets is becoming a critical area in the institutionalization of digital finance, as highlighted by recent regulatory developments [5] - The SEC has indicated that registered investment advisers and regulated funds can maintain crypto assets with certain state-chartered financial institutions without facing enforcement actions [5][6] - Regulatory clarity is essential for financial institutions, as uncertainty can negatively impact investors and hinder the adoption of crypto custody solutions [6]