Citi to Launch Custody Service for Digital Asset Storage

Date: 2025-10-14 Author: Henry Casey Categories: BUSINESS
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US bank Citi has announced the launch of a new custodial service designed to store cryptocurrencies on behalf of its clients. According to Biswarup Chatterjee, Head of International Relations and Innovation, this service is aimed at asset managers and large institutional investors, whose interest in digital assets is rapidly growing.

The main idea behind the project is to allow clients to store cryptocurrencies directly through Citi, without the involvement of third-party platforms or exchanges. This solution, Chatterjee emphasized, will significantly improve asset security, minimizing the threat of cyberattacks and theft. The bank has extensive experience in the custody of traditional assets, which, according to management, creates a solid foundation for entering the digital finance space.

Chatterjee noted that just a few years ago, traditional banks were wary of cryptocurrencies, trying to stay away from them. However, under the Donald Trump administration, financial institutions' attitudes toward digital assets began to change. New US government policies and the evolving legislative framework in this area allowed banks to more confidently integrate crypto services into their offerings.

One of the key factors driving these changes was the passage of the GENIUS Act in July, which regulates stablecoins. This legislation created a legally secure environment for banks interested in working with digital currencies backed by fiat assets. As a result, Citi received additional incentive to expand its cryptocurrency services.

In addition to the new custody service, Citi is participating in a joint project with other major global banks. Together, they are developing a stablecoin pegged to the currencies of G7 countries. The initiative aims to create a more stable and predictable settlement model for international financial transactions.

Furthermore, Citi's research department recently published a forecast for the Ethereum (ETH) price. According to bank experts, the altcoin's price could reach $4,300 by the end of 2025.

Thus, the launch of Citi's custody service reflects the growing acceptance of cryptocurrencies in the traditional financial system. This new stage of digital asset integration into banking infrastructure could signal to other major Wall Street players to more actively explore the blockchain technology market.
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