Citi Explores Crypto Custody

Citigroup Explores Crypto Custody Services

Citigroup is exploring the addition of cryptocurrency custody services, following the footsteps of other major financial institutions. This move underscores the increasing acceptance of digital assets within the traditional finance sector.

Key Takeaways

• Citigroup, managing approximately $2.4 trillion in assets, is investigating crypto custody solutions.
• This follows a successful proof-of-concept project involving tokenized private equity funds.
• Several major banks, including BNY Mellon, State Street, and others, are already expanding their digital asset custody services.

The Information, citing sources familiar with the matter, reported Citigroup's interest in crypto custody. This follows their February 14, 2024 announcement of a successful proof-of-concept project demonstrating the ability to issue and custody tokenized private equity funds on a blockchain.

"Coinbase is in talks with banks to offer custody and trading services as a partner. But many banks will still need further regulatory approval, such as from the Fed and NY DFS," noted The Information reporter Yueqi Yang.

This expansion by Citigroup highlights a broader trend. BNY Mellon, for example, has secured regulatory approval for digital asset custody beyond Bitcoin and Ethereum ETFs. Standard Chartered launched a digital asset custody facility in Dubai, while HSBC is planning a similar institutional-grade service. A joint venture between Crédit Agricole and Banco Santander also received crypto custody approval in France. State Street, managing $44.3 trillion in assets, partnered with Taurus to offer crypto custody and tokenization services.

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