Citigroup Considers Launching Custody Services for Stablecoins and Crypto ETFs
Citigroup is evaluating the launch of custody services for stablecoins and digital assets related to cryptocurrency exchange-traded funds (ETFs), as stated by Biswarup Chatterjee, Citi's global head of partnerships and innovation.
This initiative positions Citi in competition with Coinbase, which currently manages custody for over 80% of US-listed crypto ETFs. The move follows the signing of the GENIUS Act, establishing federal requirements for stablecoin issuers to maintain high-quality reserves.
“Providing custody services for those high-quality assets backing stablecoins is the first option we are looking at,” said Chatterjee.
In addition to custody services, Citi is exploring stablecoins for real-time cross-border transactions, already facilitating blockchain-based US dollar transfers across major financial hubs.
Institutional Interest in Stablecoins and ETFs
Citi's plans align with a broader trend in the US financial sector responding to favorable regulatory developments concerning stablecoins and crypto ETF products:
- Stablecoin circulation exceeds $280 billion
- Spot Bitcoin ETFs have gained popularity; BlackRock's iShares Bitcoin Trust holds around $100 billion
- The ETF market demands compliant custodians for backing digital currencies
While Citi considers issuing its own stablecoin, the immediate focus is on custody, payments, and settlement services meeting institutional standards.