Citi Eyes 2026 Crypto Custody Launch After Years of Quiet Development: CNBC

Core Insights - Citi plans to offer crypto custody services in 2026, allowing the bank to hold digital assets like bitcoin and ether for clients, marking a significant move into the digital asset space [1] - The custody solution has been in development for two to three years, with hopes to launch a credible offering for asset managers and other clients in the coming quarters [2] - Citi is pursuing a hybrid approach for custody tools, developing some in-house while exploring partnerships for other solutions, indicating flexibility in their strategy [3] Industry Context - The custody plan aims to provide institutional clients with a regulated method to store crypto, which is seen as essential for traditional investors looking to enter the sector [2] - Citi's custody service would join a growing portfolio of digital asset initiatives, including potential stablecoin issuance and tokenized deposits, reflecting the bank's commitment to innovation in the financial sector [3] - Recent investments, such as Citi Ventures' investment in BVNK, a stablecoin payments startup, highlight the bank's active role in the evolving landscape of digital finance [4]