Citigroup is set to launch an institutional bitcoin custody service later this year, a move aimed at integrating digital assets into its existing financial architecture. Nisha Surendran, who leads the initiative, outlined the bank’s vision during a speech at the World Strategy Forum, emphasizing the goal of making bitcoin “bankable.”
The foundation of this initiative includes institutional-grade key management and wallet infrastructure. Surendran highlighted that the project’s ambition is to align bitcoin with the same custody, reporting, and control frameworks that clients currently utilize for traditional assets. Clients can expect a streamlined service model that encompasses cryptocurrency, securities, and fiat money, facilitating a seamless experience where bitcoin transactions will integrate with conventional reporting channels and tax workflows applicable to equities and bonds.
From a practical perspective, clients will have the capability to initiate transactions through various channels, including SWIFT, APIs, or user interfaces. “All they should care about is instructing us. We manage the clearing and settlement complexities and then provide the necessary reports,” Surendran explained.
The motivation behind Citi’s shift towards a more integrated bitcoin offering appears to stem from client feedback. Surendran noted that many clients express a desire for exposure to bitcoin without needing to manage wallets, keys, or one-time addresses. Instead, they prefer to engage with cryptocurrencies within the familiar frameworks of traditional banking systems. Additionally, Citi aims to facilitate cross-margining between crypto and traditional assets, envisioning an account structure that incorporates multiple asset types, including U.S. Treasuries, foreign bonds, tokenized money market funds, and bitcoin under a single custody account. This composite structure aims to simplify cross-margining activities, allowing for the use of crypto assets in traditional exchanges or broker-dealer services.
The trend of traditional banks venturing into the digital asset domain is not unexpected, as institutional investors have increasingly sought exposure to this rapidly evolving sector. The move follows a broader pattern where financial giants, such as BlackRock, have begun offering exchange-traded funds to make cryptocurrency investments more accessible. Other banks, including Morgan Stanley, have also announced initiatives to integrate digital assets into their services, demonstrated by recent filings for exchange-traded products linked to bitcoin, Ethereum, and Solana, and ongoing explorations of wallet technology.
Citi is not only focused on digital asset custody but is also adapting its internal systems to support a 24/7 market, akin to that of cryptocurrencies like bitcoin. The bank has started with private blockchains and plans to expand into public networks as regulatory landscapes become clearer and client interests grow. This approach mirrors strategies undertaken by competitors, such as JPMorgan, which has developed its own digital currency, JPM Coin.
Currently, Citi’s Token Services operate as a 24/7 blockchain network to facilitate internal currency transfers. As the bank transitions into accommodating constant trading of digital assets, Surendran emphasized the need for continuous availability of U.S. dollars or digital money to support a 24/7 marketplace—a sentiment echoed by institutional clients seeking similar facilities from legacy financial institutions.
Additionally, major exchanges like the New York Stock Exchange and Nasdaq are also responding to this demand. The NYSE has announced plans to create a blockchain-based trading venue available around the clock for tokenized stocks and exchange-traded funds, while Nasdaq is working on a nearly continuous trading functionality for stocks and ETPs to align with the global nature of financial markets and investor expectations.
