Citi introduces a blockchain-based crypto custody service and considers stablecoins, developing a digital asset strategy and institutional blockchain implementation worldwide.

Citi is a banking powerhouse based in the United States, and its move into blockchain with anticipated cryptocurrency custody by 2026 is one of the largest strides in its digital assets strategy. The service will support institutional clients and fund managers, protecting their online assets such as Bitcoin and Ethereum.

The current blockchain program at Citi is two to three years old and involves the creation of their own technology alongside their possible collaboration with third-party platforms. "We hope that we will introduce a viable custody solution to our clients in the market," said Biswarup Chatterjee, who is the global head of partnerships and innovation at Citi.

The solution at the custody level will eliminate risks associated with cyber-attacks and theft, based on the years of experience of Citi in managing traditional assets. Citi, together with crypto custody, is evaluating the issuance of one of the series of stablecoins, a token based on blockchain, similar to a digital form of fiat, to facilitate payments in under banked regions.

CEO Jane Fraser has highlighted that in the short term, the focus should be on tokenized deposits, whereas blockchain-powered stablecoins may provide some useful functionality to clients around the globe who require effective digital payments.

Development of a financial infrastructure based on blockchains will allow Citi to empower its status within the expanding digital asset sector and institutionalization of cryptocurrency adoption. This shift is part of the overall Wall Street community adoption of blockchain to modernize financial services and increase digital products.