Traditional finance sparks a crypto wave: Citigroup finance executive reveals custody plans for 2026

Cryptocurrency assets are officially entering the mainstream financial landscape. According to the latest reports, global financial giant Citigroup is working on developing professional-grade custody infrastructure, with a new cryptocurrency asset custody service expected to launch within 2026. This move marks an important turning point as traditional banking shifts from observing digital assets to actively deploying strategies.

Financial Industry Leaders Personally Involved: Citigroup’s Custody Plan Has Been in the Making for a Long Time

Biswarup Chatterjee, Senior Vice President of Global Cooperation and Innovation at Citigroup, recently disclosed progress on the company’s crypto initiatives. He revealed that Citigroup has been working behind the scenes for the past few years to build digital asset custody infrastructure, with related technology and process development nearing maturity.

This financial professional emphasized that the company aims to officially launch a comprehensive custody solution within the next few quarters. The solution primarily targets asset management firms and institutional clients, offering secure and reliable digital asset custody services. This indicates that Citigroup views custody services as a key entry point into the crypto market, aiming to meet the growing demand from institutional investors.

Traditional Banks Enter the Crypto Market: Multiple Financial Institutions Join the Effort

Citigroup’s actions are not isolated. After the U.S. Securities and Exchange Commission (SEC) approved spot Bitcoin and Ethereum ETFs in 2024, traditional financial institutions have shown a clear shift in attitude toward digital assets—from initial caution to active engagement.

JPMorgan Chase has already been promoting its own deposit token project, while Morgan Stanley’s E*Trade platform plans to enable clients to directly trade mainstream digital assets such as Bitcoin, Ethereum, and Solana. These initiatives demonstrate that building comprehensive crypto asset infrastructure has become a common challenge for traditional financial institutions.

Custody Services Become a New Hotspot: Institutional Demand Drives Industry Upgrades

The reason why custody services for crypto assets are becoming a fiercely contested area among traditional finance is primarily due to the influx of institutional investors. Unlike retail trading, institutional clients have higher demands for asset security, regulatory compliance, and professional services. Traditional banks, with decades of experience in asset custody and regulatory advantages, such as Citigroup and JPMorgan Chase, entering the crypto space can effectively fill this gap.

2026 is expected to become the inaugural year for large-scale commercial use of crypto custody services. As more traditional financial institutions launch related solutions, barriers for institutional investors entering the crypto market will further decrease, and the entire industry is poised to attract more mainstream capital. The integration of traditional finance and digital assets is moving from conceptual stages to practical implementation.