Crypto is here to stay—and you can take that to the bank. Citibank, perhaps.
On Monday morning, CNBC reported that Citi is looking to launch crypto custody services next year. Biswarup Chatterjee, the global head of partnerships and innovation in the services business at Citi, told CNBC that the company is “hoping that in the next few quarters, we can come to market with a credible custody solution that we can offer to our asset managers and other clients.”
While banks have, traditionally, kept cryptocurrency at arm’s length, primarily concerned about regulatory changes, the Trump administration’s embrace of crypto—exemplified by the passage of new laws like the GENIUS Act—has companies like Citi and others changing their tune. The GENIUS Act, signed into law earlier this year, created a federal regulatory system for stablecoins, among other things.
Accordingly, banks are looking to launch crypto-related products and services, such as crypto or digital asset custody services, which, similar to a typical checking or savings account, would enable the bank to hold assets for clients.
Notably, leaders from other banks, such as JPMorgan Chase, have said that they will not offer such services, though they will conduct crypto transactions. U.S. Bank, on the other hand, is offering custody services as of last month, though it originally launched the service in 2021 and put it on hold. PNC Bank is also offering custody and trading services through a partnership with Coinbase.
In addition to custody services, Citi and others are also looking to launch their own stablecoins, or at least get in on the burgeoning action within the stablecoin subset of the larger crypto space. Stablecoins are digital assets that are pegged to another asset—such as the U.S. dollar or a commodity—that helps it maintain a relatively stable value. Last week, Citi Ventures announced an investment in BVNK, a global infrastructure platform for stablecoins, as the company prepares to push into the space.
“Stablecoins are seeing increased interest in use for settlement of on-chain and crypto asset transactions,” said Arvind Purushotham, head of Citi Ventures, in a statement. That announcement, along with the news that Citi is looking to launch custody accounts, makes it clear that crypto is, finally, sliding into the world of mainstream finance.