The $2.5 trillion bank is also weighing the launch of its own stablecoin, part of a broader push to modernize payments and asset management in a friendlier regulatory climate under President Donald Trump.

Aiming for Stablecoin and ETF Custody

Biswarup Chatterjee, who heads partnerships and innovation for Citigroup’s services division, said the bank’s first step would likely be safeguarding the reserve assets that back high-quality stablecoins. The bank is also studying how to store assets for crypto ETFs, including Bitcoin and Ethereum products — a space where Coinbase currently dominates.

The scale of that opportunity is huge. BlackRock’s IBIT fund alone holds over $90 billion, and every ETF requires equivalent custody of the underlying digital assets.

Faster Payments and Tokenized Dollars

Citigroup already runs tokenized U.S. dollar payment rails for instant global transfers between accounts. The bank is now looking at extending this capability to stablecoins, allowing clients to move funds instantly or swap them into fiat on demand.

Chatterjee said such services could dramatically cut settlement times compared to traditional bank transfers, which often take days.

Compliance and Security as Cornerstones

Any expansion into crypto custody, he added, would come with strict due diligence to ensure assets have legitimate origins and with reinforced cybersecurity to protect holdings.

The move reflects a broader trend among major banks. JPMorgan and PNC Bank have both deepened ties with Coinbase for crypto services, while BNY Mellon recently partnered with Ripple to safeguard reserves for its RLUSD stablecoin.

For Citigroup, entering the crypto custody and stablecoin markets could provide a new foothold in an industry increasingly attracting both institutional and retail capital.

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Filed under: Bitcoin - @ August 15, 2025 1:16 am