Citigroup has announced its plans to offer Bitcoin custody services as part of its core banking operations, with a rollout targeted for later in 2026. The bank currently manages about $30 trillion in assets and aims to establish a framework that treats Bitcoin as a mainstream financial asset rather than a speculative investment. This strategic move will allow institutional clients, including pension funds, insurers, and asset managers, to hold Bitcoin alongside traditional securities such as stocks and bonds within Citi’s existing operational systems.
Nisha Surendran, Citi’s head of digital asset custody development, outlined the bank’s ambitious goal to make Bitcoin “bankable” during a recent industry event hosted by a Bitcoin treasury firm. Citi plans to provide a comprehensive suite of services that extend beyond mere storage. This includes key management, wallet systems, tax reporting, regulatory compliance tools, and risk management processes, all tailored to facilitate Bitcoin transactions. Clients will not need to manage private keys or self-custody wallets, as Citi will handle these responsibilities within its established compliance frameworks.
The bank’s new offering will be built on its Integrated Digital Assets Platform, designed to operate around the clock and support Swift messaging for international transfers, as well as API connections for easy integration with current institutional workflows. By minimizing operational complexities, Citi may attract larger investors who have previously been hesitant to engage with cryptocurrencies.
The initial phase of the custody service will focus on fundamental custody capabilities, with plans for more advanced features, such as asset segregation and collateral management, to be introduced later. Citi is also open to forming partnerships with specialized firms to enhance its platform as needed.
This move positions Citi alongside other significant U.S. financial institutions like BNY Mellon and JPMorgan, who have already made inroads into digital asset custody and trading. However, Citi’s approach is distinct in that it seeks to integrate Bitcoin into the same systems utilized for other financial assets, allowing for streamlined reporting, compliance, and risk management procedures.
Additionally, the timing of Citi’s announcement comes as institutional interest in Bitcoin has surged following the approval of spot Bitcoin exchange-traded funds in the U.S. The entry of a bank of Citi’s caliber into Bitcoin custody is expected to further legitimize Bitcoin as a viable long-term holding for institutional investors. This evolving landscape points to a growing acceptance of digital assets within traditional banking, signaling a potentially brighter future for Bitcoin as it gains traction among institutional players.