Morning Minute: Citi Sets Sights on 2026 for Crypto Custody

Core Insights - Citi has announced plans to launch institutional crypto custody services by 2026, targeting asset managers and other institutions [2][4] - The bank has been developing its custody stack for 2-3 years, focusing on qualified safekeeping of digital assets with bank-grade controls and standard service level agreements (SLAs) [2][5] - Citi is also exploring the development of a stablecoin and enhancing its digital cash services, prioritizing tokenized deposits for instant treasury and payments [3][5] Group 1 - Citi's custody services will include bank-grade controls and segregation for digital assets [2] - The first phase of the custody service is aimed at asset managers and institutions, with a focus on secure safekeeping [2] - The bank's strategy involves a phased approach: custody first, followed by money rails, with issuance being optional [5] Group 2 - The move by Citi signals a growing acceptance of crypto within traditional finance (TradFi) [4] - If successful, Citi's custody solution could normalize crypto within the banking sector, making it feel less rebellious [4] - The development of these services is seen as the beginning of a broader trend of traditional financial institutions entering the crypto space [5]