Citigroup is exploring cryptocurrency custody and payment services, predominantly targeting stablecoin-backed assets. Biswarup Chatterjee, a Citigroup executive, indicated that the bank's focus would likely be on custody services for high-quality assets that underlie stablecoins. Furthermore, Citigroup is considering custody for crypto-linked exchange-traded products, including Bitcoin and Ethereum ETFs. Notably, Bitcoin ETFs have gained traction since their early 2024 launch, with U.S. spot Bitcoin ETF issuers holding nearly 1.3 million BTC. Citigroup's recent move follows its previous collaboration to leverage blockchain technology for private markets and reflects the bank's broader interest in tokenization. Regulatory clarity arising from recent U.S. initiatives has encouraged traditional financial institutions to engage more with the crypto sector. Recent laws such as the GENIUS Act and various proposed market structure bills have contributed to this evolving landscape, allowing Citigroup to consider expanding its services further.

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