Citigroup

Wall Street Giant Citi to Launch Crypto Custody in 2026

Citigroup, managing $24T in custody assets, will launch crypto custody services in 2026. The move signals Wall Street's full commitment to digital assets and could unlock billions in institutional capital for Bitcoin, Ethereum, and XRP.

The Ripple Effect

14 Oct 2025 — 4 min read

Citigroup, one of the world's largest custodian banks managing $24 trillion in assets under custody and administration, is preparing to enter the digital asset custody market in 2026. The move signals a major shift in traditional finance's embrace of cryptocurrencies and could unlock billions in institutional capital for the crypto market.

According to CNBC reports, Biswarup Chatterjee, Citi's global head of partnerships and innovation for services, confirmed the bank has been developing the custody solution for two to three years. The service will enable Citi to hold native digital assets like Bitcoin and Ethereum on behalf of institutional clients, providing a regulated alternative to existing crypto-native custody providers.

Why This Matters Now

The announcement comes amid a transformed regulatory landscape in the United States. The Trump administration's pro-crypto stance has resulted in legislation like the GENIUS Act, which provides clearer frameworks for stablecoin regulation. The SEC's rescission of SAB 121—the accounting rule that previously blocked US banks from participating in digital asset custody—has opened the floodgates for traditional financial institutions.

Citi is pursuing a hybrid approach, developing some custody technology in-house while exploring partnerships with third-party providers. "We're hoping that in the next few quarters, we can come to market with a credible custody solution that we can offer to our asset managers and other clients," Chatterjee told CNBC.

Broader Market Implications

Citi's entry validates the institutional crypto custody market, which research firm Ripple and Boston Consulting Group project could reach $6.03 billion by 2030. The bank joins other Wall Street giants making similar moves—State Street is also planning to launch crypto custody in 2026, while JPMorgan is advancing stablecoin development through deposit tokens.

The custody infrastructure is critical because institutional investors require regulated, secure storage before committing significant capital to digital assets. With Bitcoin and Ethereum ETFs managed by BlackRock and Fidelity already attracting billions, proper custody solutions from established banks could accelerate mainstream adoption.

Notably, JPMorgan CEO Jamie Dimon stated his bank will allow clients to buy cryptocurrencies but will not custody the assets, highlighting the strategic divergence among major banks regarding direct crypto exposure.

XRP and Ripple: Positioned for Institutional Growth

Citi's custody announcement has significant implications for XRP and Ripple's ecosystem. Ripple has been aggressively building its own institutional custody infrastructure, partnering with South Korea's BDACS to provide custody services for XRP and Ripple's RLUSD stablecoin.

The convergence of traditional banks like Citi entering custody services alongside Ripple's expanding infrastructure creates a powerful tailwind for XRP adoption. Here's why:

Institutional Legitimacy: When major custodian banks like Citi offer digital asset storage, it removes a significant barrier for institutional investors who previously avoided crypto due to custody concerns. XRP, with its regulatory clarity following the SEC case resolution in August 2025 confirming its non-security status in secondary markets, is well-positioned to benefit.

Cross-Border Payment Integration: Citi's existing Citi Token Services, which enables real-time cross-border payments using tokenized deposits, could eventually integrate with the XRP Ledger ecosystem. Ripple's On-Demand Liquidity (ODL) service processed $1.3 trillion in Q2 2025, cutting cross-border remittance costs by 70% in key corridors.

XRP ETF Potential: The pending approval of spot XRP ETFs could unlock $5-8 billion in institutional inflows, according to analysts. Major banks offering custody services would be natural partners for ETF issuers, potentially driving demand for XRP as an institutional asset class.

RLUSD Stablecoin Adoption: Ripple's RLUSD stablecoin, with its $455 million market cap and NYDFS compliance, creates a use case flywheel: more RLUSD usage drives XRP demand through transaction fees on the XRP Ledger. As banks like Citi explore stablecoin offerings, interoperability with RLUSD could strengthen XRP's utility.

Price Impact: XRP has already surged 176% year-to-date in 2025, driven by tangible utility rather than speculation. The expansion of institutional custody options could accelerate this momentum.

Looking Ahead

Citi's 2026 custody launch represents more than just another financial product—it's a signal that Wall Street is fully committing to digital assets. For XRP holders and the broader crypto market, this institutional infrastructure buildout could be the catalyst that brings digital assets into mainstream finance portfolios.

The key question is no longer whether traditional banks will enter crypto, but how quickly they can scale their offerings to meet institutional demand. With Citi's $24 trillion custody business now entering the digital asset space, the answer appears to be: very quickly indeed.

SOURCES

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