Crypto Custody: Citigroup Wants to Compete with Coinbase by 2026

The American banking giant Citigroup takes a decisive step into the crypto universe. After years of cautious observation, the New York bank is preparing to offer digital asset custody services as early as 2026. An announcement that comes amid a regulatory environment finally clarified in the United States.

A calculated entry into a booming market

Citigroup finally unveils its ambitions in crypto. Indeed, Biswarup Chatterjee, Global Head of Partnerships and Innovation, confirmed that the bank will launch its cryptocurrency custody services as early as 2026.

The result of more than two years of discreet development, this initiative thus combines proprietary technologies and strategic partnerships with specialized providers. The goal: to allow institutional clients to hold native digital assets — bitcoin, Ethereum and others — directly, without relying on external intermediaries.

The strategy adopted by Citi is based on a modular and flexible architecture, as explained by Biswarup Chatterjee.

We can have certain solutions entirely designed and built in-house targeting certain assets and certain segments of our clients, while we can use a […] third-party solution, lightweight and agile for other types of assets.

This hybrid approach allows the bank to maintain control over its critical operations while quickly adapting to market developments.

The timing of this announcement is no coincidence. Indeed, the U.S. Federal Reserve has just eased its guidelines, removing the requirement for banks to notify regulators before engaging in activities related to digital assets. Following this, the FDIC and OCC adopted similar measures, lifting the last regulatory hurdles.

As a result, the doors to crypto now open to major financial institutions, and Citigroup intends to be among the first to seize the opportunity.

A multifaceted offensive to conquer the crypto ecosystem

Beyond simple asset custody, Citigroup is deploying a large-scale strategy. In parallel, the bank has joined a consortium of nine European institutions, including ING, UniCredit, and DekaBank, to develop a regulated euro-backed stablecoin. The launch is scheduled for the second half of 2026.

This initiative is part of a broader vision where stablecoins become tools for cross-border payments, especially in regions where banking infrastructure remains fragile.

Furthermore, Scott Chronert, U.S. equity strategist at Citi, expresses measured optimism about the evolution of cryptos. He believes that bitcoin and Ethereum will continue their upward trend until 2026, offering investors interesting diversification opportunities against equity markets.

This analysis reflects a change in perception within the institution: cryptos are no longer seen as marginal assets, but as legitimate components of a balanced portfolio.

The involvement of Citi Ventures, the group’s venture capital arm, strengthens this dynamic. The strategic investment in BVNK, a company specializing in stablecoins, demonstrates a willingness to explore the entire crypto value chain. 

By combining custody services, stablecoin development (stablecoins) and targeted fintech investments, Citigroup positions itself as a leading player at the convergence of traditional finance and the digital economy. A patient, methodical, and ambitious strategy that could well redefine the place of major banks in the global crypto market.