Citigroup has revealed plans to launch a crypto custody service by 2026, signaling a major shift in Wall Street’s embrace of digital assets. This initiative will allow Citi to securely store cryptocurrencies like bitcoin and ether on behalf of its clients, creating a regulated avenue for institutional investors to access and hold these digital assets.

The move is the result of two to three years of internal development and strategic exploration. Citi is taking a hybrid approach, building some solutions in-house while also considering partnerships with third-party providers to cover a broad range of needs. This flexibility is designed to offer asset managers and institutional clients tailor-made custody options grounded in both security and compliance.

Citi’s announcement comes as traditional financial institutions deepen their involvement in crypto, responding to rising demand from asset managers and a changing regulatory landscape. Recent developments in U.S. financial regulation have paved the way for banks to explore crypto services more fully. New legislation has been introduced to create a safer and clearer regulatory framework, which has accelerated Wall Street’s interest in digital currencies.

Beyond custody, Citi is also exploring other digital asset initiatives, including the possible issuance of its own stablecoin, although its immediate focus remains on tokenized deposits. The bank’s broader digital asset strategy is evident in recent investments and pilots involving blockchain payments and stablecoin technology, reflecting its commitment to innovation in financial services.

By offering crypto custody, Citi aims to enhance institutional trust in digital assets and bridge the gap between traditional finance and the rapidly evolving world of cryptocurrencies. This service, once launched, will position Citi prominently among the growing group of major banks moving deeper into the crypto ecosystem.