America’s largest bank, Citi, is going large in the digital arena. Starting from the early part of 2026, the banking giant will roll out a lineup of new products enabled by technology, including one of the most highly anticipated breakthroughs in recent finance—keeping crypto assets in custody.
This move is a true watershed moment for incumbent banking, showing that Wall Street is finally jumping on the cryptocurrency and digital currency bandwagon.
A new era at Citi
Citi has been working behind the scenes, building out its business for crypto custody for more than two years, and this will allow the bank to store clients’ digital money like Bitcoin and Ethereum securely.
We would like to be able to take to market within the next one to two quarters or so a successful custody product that we can take back to our asset managers and other customers,” Citi global head of partnerships and innovation Biswarup Chatterjee told CNBC in an interview.
It is something to offer institutional investors an even safer, regulated way of holding their crypto holdings, something unavailable in banking.
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Why banks are turning to crypto
The Citi move is one of the expanding list of large American banks to finally leap crypto services after years of waiting. The improved regulatory climate has driven institutions such as Citi, JPMorgan, and Bank of America into the digital assets space.
Under the Trump administration, new regulations like the GENIUS Act started laying out clearer federal guidelines for stablecoins—digital money collateralised by a government-debt-denominated currency like the U.S. dollar or euro. The permissiveness provides greater confidence to legacy banks to develop products that combine digital assets.
What the new crypto custody service means
Citi’s upcoming service will let customers store their digital currencies directly with the bank. It will rely on a mix of in-house technology and, in some cases, partnerships with third-party providers.
“We may use a third-party, lightweight, nimble solution for other kinds of assets,” Chatterjee explained. “We’re not ruling anything out.”
This flexibility demonstrates Citi’s commitment to meeting the diverse needs of its clients—from large investment firms to individual account holders—as cryptocurrency becomes more mainstream.
While Citi moves ahead, not every big bank is following the same path. JPMorgan CEO Jamie Dimon has said his bank will let customers buy cryptocurrencies but won’t hold them.
Entering the blockchain space
In addition to crypto custody, Citi is venturing into the blockchain, software used by most digital currencies. Its new Citi Token Services platform will use digital “deposit tokens” to send money anywhere in the world at any time, even when businesses are closed.
The new device can accelerate cross-border payments and lower costs for companies and individuals sending or receiving remittances overseas.
Stablecoins and the future of banking
Citi is also experimenting with stablecoins as it moves into digital. They are fixed-value coins because they are pegged to government-backed currencies and might help companies conduct business in areas where the banking system is underdeveloped.
“There are certain parts of the world where our customers need more payment instruments,” Chatterjee said. “Stablecoins can be a suitable match for that.”
Other banks are also exploring this idea. Both Bank of America and JPMorgan have hinted that their teams are testing similar digital currency projects.
