Citi is reportedly poised to launch a comprehensive crypto custody service by 2026, marking a significant expansion into digital assets by a major Wall Street institution. This move places Citi among a growing number of financial giants venturing into bitcoin and other cryptocurrencies, largely influenced by an increasingly favorable U.S. regulatory environment.

According to Biswarup Chatterjee, Citi’s global head of partnerships and innovation for its services division, the bank has been diligently developing its custody offering for more than two years and anticipates bringing it to market “in the next few quarters.” This service will enable Citi to securely hold native bitcoin and various other cryptocurrencies on behalf of its clients, representing a substantial step for one of the world’s leading custodians of traditional financial assets. Chatterjee indicated a flexible strategy, stating, “We may have certain solutions that are completely designed and built in-house that are targeted towards certain assets and certain segment of our clients, whereas may we may use a third party, lightweight, nimble solution for other kind of assets.”

The announcement follows a bullish 12-month outlook for bitcoin issued by Citigroup analysts earlier this month, who set a target of $181,000 and revised their year-end forecast to $132,000. They attributed this optimism to strong inflows totaling approximately $7.5 billion and a surge in institutional demand. The analysts expressed a more positive stance on bitcoin compared to ethereum, highlighting bitcoin’s ability to capture the majority of new capital entering crypto markets and projecting that a supportive U.S. regulatory framework could sustain this momentum into 2026.

Custody—the vital function of safeguarding client assets—is widely recognized as one of the most critical and intricate aspects for the mainstream institutional adoption of cryptocurrencies. While specialized firms such as Anchorage and BitGo have historically dominated this sector, large banks are now recognizing an opportunity to provide regulated alternatives, leveraging decades of experience in securing traditional securities. Citi’s embrace of crypto custody coincides with legislative efforts in Washington to establish clearer rules for digital assets, exemplified by measures like the GENIUS Act. Such initiatives are bolstering the confidence of major financial institutions to develop and offer crypto-related products.

Citi’s foray into custody is also part of its broader engagement with blockchain technology. This includes initiatives like Citi Token Services, which facilitates real-time cross-border payments through tokenized deposits. Furthermore, the bank is actively researching stablecoins—digital tokens typically pegged to fiat currencies—as potential tools for global trade and payments, particularly in regions with less-developed banking systems. Other prominent banks are pursuing similar endeavors; JPMorgan recently unveiled plans for a deposit token, and Bank of America is reportedly developing its own stablecoin product, underscoring a wider trend of institutional integration with digital assets.