Citi Says “We’ll Hold Your Crypto” A 2026 Custody Launch That’s Been Brewing in Silence

 

Citi Says “We’ll Hold Your Crypto” A 2026 Custody Launch That’s Been Brewing in Silence

Ladies and gentlemen, bank nerves everywhere: Citigroup is tiptoeing into the crypto arena. In a move grounded somewhere between bold ambition and delayed inevitability, Citi is reportedly targeting 2026 to unveil its crypto custody service, admitting (with a sigh) that yes, traditional banks might actually hold digital assets someday. 

After years of playing it cool, Citi’s global head of partnerships and innovation, Biswarup Chatterjee, confessed that the bank has been quietly building its custody infrastructure “for two to three years.” The plan: offer a “credible custody solution” for institutional clients, perhaps combining in-house builds with third-party integrations. 

In other words: if you’ve ever dreamt of your bank treating your Bitcoin like it treats your checking account, that “someday” might actually have a 2026 calendar date now.

Why This Matters (Besides the Media Headline Value)

1. From Wall Street to Web3, slowly but surely
   Traditional financial institutions have long tiptoed around crypto, citing risk, regulation, and internal inertia. Now, under what many see as a friendlier regulatory climate, Citi is saying: “Okay, fine, we’ll try custody too.” It’s less leap and more cautious shuffle. 

2. Bridge-building for institutional crypto adoption
   Many asset managers still view custody infrastructure as a barrier to entry. If Citi provides on-ramps, it might coax more “legacy capital” into digital assets  if only because their risk models now feel slightly less crazy.

3. Hybrid strategy: build & buy
   Chatterjee doesn’t want to put all eggs in one basket. Citi is reportedly considering a hybrid architecture: internal custody for some assets, third-party wraps or partnerships for others. That means flexibility and potential complexity. 

4. Regulation, liability & security claws waiting
   Being a bank doesn’t make crypto custody safe by default. Citi will face compliance, anti-money laundering (AML), cyber threat, and audit pressure. One botched hack or compliance slip-up, and this becomes a headline crisis.

5. Competition is already heating up
   Coinbase remains the custodian for over 80% of crypto ETFs. Other banks (like JPMorgan) have said “no thanks” to custody, preferring trading or custodian partnerships. Citi entering custody means even more turf battles. 

What Could Go Right (Or Spectacularly Wrong)

• If it works:

  • Citi becomes a stable, trusted custodian for institutions that previously hesitated.

  • The friction of moving into crypto is reduced  on-chain exposure becomes more “bank-like.”

  • Liquidity, capital flows, and confidence in regulated crypto infrastructure could get uplifted.

• If it fails:

  • A security breach or fund loss would be catastrophic for brand and client trust.

  • High operating costs and regulatory drag could leave the custody arm as a money pit.

  • Competing banks or pure crypto custodians could outpace it in agility, leaving Citi firefighting rather than leading.

FAQs

Q1: Is Citi really going to launch crypto custody in 2026?
A1: That’s the plan. Citi executives told CNBC they aim for a credible custody solution by 2026 after years of internal development. 

Q2: Which crypto assets will it support?
A2: The intention is to custody “native digital assets” like Bitcoin and Ether, though the offering may differ by asset class and client.

Q3: Will Citi build everything itself or partner with existing players?
A3: A hybrid approach. Citi is exploring in-house builds for some assets while leveraging third-party or lightweight solutions for others. 

Q4: Why now? What changed?
A4: The regulatory environment appears more favorable, institutional demand is growing, and banks want a seat in the crypto infrastructure race. 

Q5: What are the biggest risks for Citi’s custody plan?
A5: Cybersecurity, regulatory compliance, operational complexity, competition from crypto natives, and reputational fallout from any mistake.

Q6: Will this make crypto safer or more boring?
A6: Perhaps both. If Citi delivers trusted, reliable custody, crypto might lose some “wild west” drama  but that may help attract capital that demands stability.