Yahoo Finance·2025-10-14 11:11Core Insights - Citigroup plans to launch digital asset custody services by 2026, following the trend set by other banks like JP Morgan and US Bank [1] - The bank's custody services will allow it to hold Bitcoin and Ethereum for asset managers and institutional clients, with development ongoing for two to three years [1][2] - Citigroup is also exploring the possibility of launching its own stablecoin, focusing on tokenized deposits for practical applications [2] - The bank sees stablecoins as potentially beneficial in regions with underdeveloped financial infrastructure and is considering custody and payment services for third-party stablecoins [3] - Citigroup forecasts that stablecoin issuance could reach $1.9 trillion in a base case and $4 trillion in an optimistic scenario by 2030 [3] - McKinsey estimates that around $250 billion in stablecoins have been issued to date, mainly for cryptocurrency transaction settlements [4] Industry Trends - Morgan Stanley has advised clients to allocate 2-4% of their investment portfolios to crypto, marking a significant shift in Wall Street's approach to digital assets [5] - The Global Investment Committee of Morgan Stanley released guidelines suggesting up to 4% crypto allocation in opportunistic growth portfolios [6] - Bitcoin reached an all-time high of approximately $125,700 before settling in the low $123,000 range, indicating strong market interest [6]