Citibank to Launch Crypto Custody Services in 2026 After 3 Years of Preparation

Group 1: Citigroup's Crypto Custody Services - Citigroup plans to launch crypto custody services in 2026, after a development period of two to three years [1] - The bank is exploring both in-house technology solutions and potential third-party partnerships for its custody services [1][2] - The upcoming service will involve Citi holding native cryptocurrencies on behalf of clients, with a mix of in-house and third-party solutions [2] Group 2: Competitive Landscape - Citigroup's custody plans contrast with JPMorgan's current stance, which allows clients to buy cryptocurrencies but does not hold custody of the assets [3] - JPMorgan has expressed interest in changing its custody approach next year, indicating a competitive shift in the market [3] Group 3: Broader Digital Asset Ambitions - CEO Jane Fraser confirmed that Citigroup is exploring the issuance of a Citi stablecoin and developing tokenized deposit services for corporate clients [4] - The bank already offers blockchain-based dollar transfers between major global offices, enhancing its digital asset capabilities [4] Group 4: Consortium for G7 Stablecoin - A consortium of nine global banking giants, including Citigroup, is planning to develop a jointly backed stablecoin focused on G7 currencies [5] - The consortium aims to issue reserve-backed digital payment assets on public blockchains, pegged one-to-one against traditional fiat currency [5] Group 5: Regulatory Engagement - The coalition of banks is already in contact with regulators across relevant markets regarding the stablecoin initiative [6] - Earlier discussions among major banks, including Citigroup, about the shared stablecoin venture have now progressed beyond conceptual stages [6]