Citigroup’s Big Crypto Move: Stablecoin Custody, ETF Services, and Faster Payments

📌 Introduction
Citigroup is evaluating a deeper role in the cryptocurrency sector by considering custody and payment solutions tied to stablecoins and crypto-backed exchange-traded funds (ETFs). A senior executive confirmed that the institution is assessing multiple opportunities as Washington’s latest regulatory framework reshapes the digital asset market.

📊 Why Now? The Regulatory Catalyst

• Congress has passed a law that clarifies reserve requirements for stablecoin issuers.

• Issuers must now back their tokens with secure assets such as U.S. Treasuries or cash reserves.

• This opens the door for traditional custodians like Citi to play a central role in safekeeping these assets.

Visual: Stablecoin Reserve Framework (Table)

📌 Citi’s Strategic Focus

Biswarup Chatterjee, Global Head of Partnerships and Innovation within Citi’s services division, explained that the bank’s first step is providing custody for high-quality reserve assets backing stablecoins. Citi’s services arm—which handles payments, treasury, and corporate finance—remains a critical driver of its global operations.

📊 Stablecoins in Numbers

• Market size: $250 billion in circulation (McKinsey estimate).

• Primary use: Crypto trading and settlements.

• Citi has previously hinted at creating its own stablecoin but is now signaling broader ambitions.

Visual: Stablecoin Growth (Graph)

• A bar/line chart showing growth from ~$20B in 2020 to ~$250B in 2024.

📌 Custody for Digital Asset Funds

• SEC approval of spot Bitcoin ETFs has fueled demand for secure custody.

• BlackRock’s iShares Bitcoin Trust has nearly $90 billion AUM.

• Coinbase currently leads custody services for 80% of crypto ETF issuers.

• Citi’s entry could diversify options for institutional investors.

Visual: ETF Market Share (Pie Chart)

• Coinbase ~80%

• Other Custodians ~20%

• Citi (Potential Share: Growing)

📌 Payment Innovation with Stablecoins

• Citi is piloting blockchain-based payments to accelerate global transactions.

• Current system: Tokenized USD transfers across New York, London, Hong Kong (24/7).

• Future plan: Enable stablecoin transfers between client accounts or instant dollar conversions for cross-border payments.

Visual: Transaction Speed Comparison (Table)

📌 Balancing Innovation and Compliance

While regulators are becoming more open to digital assets, Citi stresses compliance with:

• Anti-money laundering (AML) rules

• Cross-border currency controls

• Enhanced cybersecurity and operational safeguards

The bank is also actively weighing the issuance of its own stablecoin as part of its future strategy.

✅ Conclusion

With players like Citigroup, Bank of America, and Fiserv stepping into stablecoin and crypto custody services, the line between traditional finance and digital assets continues to blur. As regulatory clarity fuels adoption, Citi’s expansion could significantly shape the institutional adoption of cryptocurrencies.

🙌 Thank You for Reading!
Stay tuned for more insights on how global financial institutions are reshaping the digital asset landscape.