Citigroup Eyes Stablecoin Custody and Bitcoin ETF Services
Citigroup is evaluating stablecoin custody and Bitcoin ETF services in response to the GENIUS Act’s full-reserve backing requirement. Head of Global Partnerships Biswarup Chatterjee says stablecoin custody is a top priority, ensuring U.S. Treasuries or cash support. The bank plans to offer digital asset custody for Bitcoin ETFs, challenging Coinbase’s market dominance, and expand its blockchain-based Tokenized USD Payments corridor between New York, London and Hong Kong. Citi will enable instant on-chain stablecoin transfers and conversions for rapid settlement, aiming to accelerate cross-border payments. These moves deepen Citigroup’s institutional crypto services amid clearer U.S. regulations, though the bank must maintain robust AML and FX controls and strengthen operational security.
Bullish
Citigroup’s push into Bitcoin ETF custody and stablecoin custody services signals growing institutional support for cryptocurrency infrastructure, which is bullish for BTC. In the short term, offering ETF custody can attract new institutional inflows into Bitcoin funds, lifting trading volumes and price. Additionally, streamlined cross-border payments via stablecoins can improve liquidity and market efficiency, indirectly benefiting Bitcoin by reducing friction in global trades. Over the long term, broader institutional adoption backed by clear regulations under the GENIUS Act may sustain demand and lower volatility, further supporting a bullish outlook. However, stablecoin custody itself has limited direct impact on stablecoin pegs but underpins overall market trust.