Crypto Custody by Citibank; JPMorgan Expands Crypto Trading
Citibank plans to launch a native crypto custody service by 2026, aiming to securely store institutional clients’ digital assets using proprietary technology and third-party partnerships. Meanwhile, JPMorgan has ruled out direct custody but will expand its crypto trading services to meet rising institutional demand. These divergent strategies mark renewed Wall Street engagement with digital assets, underscored by BlackRock CEO Larry Fink’s endorsement of Bitcoin as a gold-like alternative. Traders should monitor impacts on service offerings, regulatory compliance and liquidity as major banks integrate crypto custody and crypto trading solutions.
Bullish
Citibank’s plan to offer native crypto custody services and JPMorgan’s expansion of crypto trading services are likely to boost institutional demand and market liquidity for Bitcoin. Enhanced custody infrastructure reduces security concerns, while broader trading access facilitates inflows. In the short term, this may stabilize prices as demand rises; over the long term, increased adoption by major financial institutions could underpin a sustained bullish trend for BTC.