Citi considers launching custody services for stablecoins and crypto ETF assets, leveraging Trump’s GENIUS Act requirements and targeting Coinbase’s 80% market share.
By Ibrahim Ajibade
Editor Marco T. Lanz
Updated
3 mins read
Citigroup is considering launching custody services for stablecoins and the digital assets backing cryptocurrency exchange-traded funds (ETFs), according to a Reuters interview with Biswarup Chatterjee, Citi’s global head of partnerships and innovation.
The move would pit Citi against Coinbase, which currently serves as custodian for more than 80% of US-listed crypto ETFs. The bank’s push comes months after US President Donald Trump signed the GENIUS Act, which set federal requirements for stablecoin issuers to hold high-quality reserves such as US Treasuries or cash.
“Providing custody services for those high-quality assets backing stablecoins is the first option we are looking at,” said Biswarup Chatterjee, Global Head of Partnerships and Innovation.
Beyond custody, Citi is exploring the use of stablecoins for real-time cross-border transactions. The bank already offers blockchain-based “tokenized” US dollar transfers between accounts in New York, London, and Hong Kong, and is developing services to move or convert stablecoins for instant settlement.
Citigroup’s plans reflect a wider shift in the US financial sector as banks respond to positive swings in the US regulatory stance towards stablecoins and crypto ETF products. With a global network of financial services that stretches across more than 160 countries and 200 million active customers, Citi’s venture into cryptocurrencies and stablecoins could make a significant impact.
Crypto Aggregate Stablecoin Market Cap | Source: CoinGecko
Stablecoin circulation now exceeds $280 billion according to CoinMarketCap data, though most activity remains within on-chain crypto markets. Meanwhile, spot Bitcoin ETFs, legalized in 2024, have surged in demand, with BlackRock’s iShares Bitcoin Trust alone holding roughly $100 billion in assets at press time on Aug. 14.
Chatterjee also noted that the ETF market requires custody of the equivalent amount of digital currency to back these products, creating demand for large-scale, compliant custodians. While Citi has floated the idea of issuing its own stablecoin, the immediate focus remains custody, payments, and settlement services that can meet institutional-grade compliance standards.
As Citigroup’s stablecoin and ETF custody plans emphasize the importance of secure, scalable storage infrastructure for crypto assets, multi-chain wallets like Best Wallet (BEST) are poised to attract attention from both retail and institutional players.
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Its multi-chain design positions it as a go-to solution for users seeking the same kind of institutional-grade security and functionality that banks like Citi are aiming to deliver.
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Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Ibrahim Ajibade is a seasoned research analyst with a background in supporting various Web3 startups and financial organizations. He earned his undergraduate degree in Economics and is currently studying for a Master’s in Blockchain and Distributed Ledger Technologies at the University of Malta.
