Global bank Citigroup is exploring the provision of stablecoin custody and related services, signalling growing interest among traditional financial institutions in digital assets following recent legislative changes in the US.
Speaking to Reuters, Biswarup Chatterjee, Citi’s Global Head of Partnerships and Innovation for its Services division, confirmed the bank is assessing how to support stablecoins — cryptocurrencies typically pegged to fiat currencies such as the US dollar — through safekeeping and administration of the underlying assets.
The move follows the passage of a new law requiring stablecoin issuers to back their tokens with secure assets, including cash or US Treasuries. This regulatory clarity has created opportunities for established custody banks to support the infrastructure behind digital payments and settlements.
“Providing custody services for those high-quality assets backing stablecoins is the first option we are looking at,” Chatterjee told Reuters, noting that Citi’s Services business — which includes treasury, cash management and payments — remains a core part of the bank’s strategy amid ongoing restructuring.
While Citi previously indicated it was considering issuing its own stablecoin, this marks one of the first public signals of broader ambitions in digital asset services. The bank is also evaluating custody solutions for crypto-linked investment products, including bitcoin ETFs, which have gained traction since receiving regulatory approval.
BlackRock’s iShares Bitcoin Trust, the largest of its kind, currently has a market capitalisation of around $90bn. Chatterjee emphasised the need for secure custody of the equivalent digital currency to support such funds.
Beyond investment products, Citi is investigating how stablecoins could accelerate cross-border payments. The bank already offers blockchain-based tokenised dollar transfers between major financial hubs and is developing services that would allow clients to send stablecoins or convert them into fiat for instant transactions.
Despite a more permissive regulatory stance under the current US administration, Chatterjee stressed that compliance with anti-money laundering rules and international currency controls remains essential. He also highlighted the importance of robust cybersecurity and operational safeguards in any future crypto custody offering.
