Citigroup eyes custody services for stablecoins and crypto ETFs amid US policy shift

Citigroup is exploring crypto custody services for stablecoins and the assets backing crypto exchange-traded funds (ETFs), according to a Reuters report.

The move would put the bank in direct competition with established players like Coinbase, which currently dominates the ETF asset custody market.

The renewed push into digital asset services follows the GENIUS Act, signed into law last July, which set federal rules for stablecoins. Under the law, issuers must hold high-quality assets such as US Treasuries or cash to back their tokens, creating opportunities for traditional custody banks to safeguard and manage these reserves.

“Providing custody services for those high-quality assets backing stablecoins is the first option we are looking at,” said Biswarup Chatterjee, Citigroup’s global head of partnerships and innovation.

Beyond safekeeping, Citi is also exploring the use of stablecoins to speed up cross-border payments and settlements.

The bank already offers “tokenized” US dollar payments over blockchain between accounts in New York, London, and Hong Kong 24/7. Citi is also developing services to let clients transfer stablecoins between accounts or convert them into dollars for instant settlement.