Citi to Launch Bitcoin Custody as Wall Street Moves Deeper Into Crypto

Citi is preparing to launch institutional Bitcoin custody later this year, allowing clients to hold cryptocy and traditional financial assets through the same infrastructure as one of Wall Street’s largest banks accelerates its expansion into blockchain-based finance.

The upcoming service will be integrated into Citi’s new Custody+ platform, a suite of custody, settlement, liquidity and digital asset tools designed for financial markets increasingly moving toward 24/7 trading and near-instant settlement. 

The announcement marks another significant step toward bringing cryptocy infrastructure directly inside the traditional banking system rather than requiring institutional investors to rely exclusively on crypto-native custodians.

Citi Plans to Launch Bitcoin Custody This Year

Citi expects its digital asset custody service to launch later in 2026, beginning with Bitcoin.

The bank first revealed plans to develop native crypto custody in 2025, but its latest announcement provides a clearer picture of how the service will operate.

Instead of creating an entirely separate platform for cryptocy, Citi is combining digital and traditional asset custody within the same framework.

Key features of Citi’s new strategy include:

• Institutional Bitcoin custody expected later in 2026

• Traditional securities and crypto accessible through the same custody framework

• Near-real-time and real-time settlement capabilities

• 24/7 movement of tokenized bank deposits in select markets

• Liquidity management and automated settlement tools

• AI-powered market intelligence

The crypto custody service is being built on Citi’s broader enterprise digital asset architecture. 

Custody+ Brings Crypto and Traditional Assets Together

The larger story extends beyond Citi simply holding Bitcoin.

Custody+ is designed to modernize the bank’s entire post-trade infrastructure as global financial markets move toward faster settlement and continuous trading.

Amit Agarwal, Head of Custody at Citi Investor Services, said the platform resulted from a multi-year effort to build infrastructure capable of keeping pace with the changing strategies of institutional clients. 

Citi says more than 80% of its global asset-servicing event volume is already processed in real time, demonstrating how far the bank has moved away from traditional batch-processing systems. 

By adding Bitcoin to that infrastructure, institutional clients could eventually manage digital assets alongside stocks, bonds and other traditional securities without maintaining completely separate custody systems.

Citi Token Services Already Moves Tokenized Deposits 24/7

Bitcoin custody is only one piece of Citi’s growing blockchain strategy.

The bank already operates Citi Token Services, which allows institutional clients to move tokenized deposits nearly instantly and around the clock across select Citi markets. 

Unlike stablecoins such as USDC or USDT, tokenized deposits represent traditional commercial bank deposits on blockchain-based infrastructure.

Citi has been expanding those capabilities throughout 2026.

The bank has worked with Intercontinental Exchange to explore tokenized deposits across ICE clearinghouses and participated in a Swift pilot involving 24/7 cross-border payments using tokenized commercial bank money. 

Citi is also among the major U.S. banks participating in a planned shared tokenized deposit network through The Clearing House, which is targeting a launch during the first half of 2027. 

Wall Street Banks Are Building Crypto Infrastructure

Citi’s announcement is part of a much larger shift taking place across traditional finance.

Major banks that were previously cautious about directly handling cryptocurrencies are increasingly developing custody, tokenization and blockchain settlement infrastructure for institutional customers.

Earlier this year, the New York Stock Exchange announced that it was working with Citi and BNY on a planned blockchain-based platform supporting tokenized stocks and ETFs.

Morgan Stanley also applied for a national trust bank charter for an entity that would provide cryptocy custody services. 

The trend suggests that Wall Street’s approach to crypto is evolving from experimentation toward building permanent infrastructure around digital assets.

Bitcoin Custody Could Keep Institutional Assets Inside Banks

Crypto custody represents an important strategic opportunity for traditional banks.

Institutional investors entering cryptocy markets need secure systems for storing private keys, executing transactions, managing regulatory requirements and integrating digital assets into existing portfolios.

Historically, much of that business has gone to crypto-native companies.

If Citi can provide Bitcoin custody alongside its existing securities services, institutional customers could potentially keep more of their operations inside the same banking relationship.

That could become increasingly important as pension funds, asset managers, hedge funds and other institutional investors increase their exposure to digital assets.

Citi Is Building for 24/7 Financial Markets

The underlying strategy behind Custody+ reflects a broader transformation occurring across financial markets.

Cryptocy networks operate continuously, while traditional financial infrastructure still relies heavily on specific trading hours, settlement windows and intermediaries.

Blockchain technology is increasingly challenging that model.

Citi’s new platform combines several technologies designed for that transition, including real-time asset servicing, instant settlements, automated liquidity management, tokenized deposits and digital asset custody. 

The bank is effectively preparing its institutional infrastructure for a financial system where traditional securities, tokenized assets and cryptocurrencies increasingly operate side by side.

Bitcoin Is Becoming Part of Wall Street’s Core Infrastructure

Citi’s decision to integrate Bitcoin custody directly into its broader custody platform represents another milestone in cryptocy’s institutional adoption.

Rather than treating Bitcoin as a separate experimental asset class, one of the world’s largest banks is preparing infrastructure that allows it to sit alongside traditional securities within the same institutional custody environment.

At the same time, Citi is investing in tokenized deposits, blockchain settlement and other technologies that could eventually reshape how money and securities move between financial institutions.

The result is a significant change in Wall Street’s relationship with blockchain.

Banks are no longer simply exploring whether cryptocy and tokenization will become part of traditional finance. Increasingly, they are building the infrastructure necessary to compete in a financial system where they already are.