Is Citi about to make crypto boring-and safe?

"On Monday morning, CNBC reported that Citi is looking to launch crypto custody services next year. Biswarup Chatterjee, the global head of partnerships and innovation in the services business at Citi, told CNBC that the company is "hoping that in the next few quarters, we can come to market with a credible custody solution that we can offer to our asset managers and other clients.""

"Accordingly, banks are looking to launch crypto-related products and services, such as crypto or digital asset custody services, which, similar to a typical checking or savings account, would enable the bank to hold assets for clients. Notably, leaders from other banks, such as JPMorgan Chase, have said that they will not offer such services, though they will conduct crypto transactions. U.S. Bank, on the other hand, is offering custody services as of last month, though it originally launched the service in 2021 and put it on hold."

"In addition to custody services, Citi and others are also looking to launch their own stablecoins, or at least get in on the burgeoning action within the stablecoin subset of the larger crypto space. Stablecoins are digital assets that are pegged to another asset-such as the U.S. dollar or a commodity-that helps it maintain a relatively stable value. Last week, Citi Ventures announced an investment in BVNK, a global infrastructure platform for stablecoins, as the company prepares to push in"

Citi is preparing to offer crypto custody services as early as next year, aiming to provide a credible custody solution for asset managers and other clients. Banks previously kept cryptocurrency at arm's length due to regulatory uncertainty, but recent federal moves such as the GENIUS Act have created a clearer framework for stablecoins. Several banks are entering the market in different ways: some will offer custody, some will transact without custody, and some are partnering with crypto firms. Citi Ventures also invested in BVNK to build stablecoin infrastructure and support future stablecoin activity.

Read at Fast Company