Citigroup is on track to launch a crypto custody service by 2026, aiming to integrate Bitcoin into traditional finance. The initiative, led by Nisha Surendran, focuses on providing bank-grade custody, key management, and integration into existing financial systems.
The bank has spent over three years developing the necessary infrastructure. Under the proposed model, Citi will hold clients' native crypto assets, applying the same risk controls and reporting frameworks used for conventional securities. Bitcoin holdings will be incorporated into existing tax workflows and reporting channels, allowing institutions to manage digital assets alongside equities and bonds.
Surendran stated that this service aims to reduce operational friction for institutions and strengthen financial safeguards. She noted that future adoption will likely stem from traditional institutions hesitant due to the novelty of digital assets.
Citi plans to route Bitcoin transactions through its existing channels, such as Swift messaging and API connections, abstracting away complexities. The bank is also exploring stablecoins and blockchain-based deposit tokens to modernize cross-border payments. The custody offering could enable cross-margining, allowing clients to use Bitcoin as collateral within their master custody accounts.