Citi Bank is putting Bitcoin first ahead of other assets

Citi Moves to Custody Bitcoin for Institutional Clients

Citigroup has confirmed it will launch institutional-grade $BTC custody services later this year, starting with Bitcoin before expanding to other digital assets. The announcement was made by Nisha Surendran, Citi's head of digital asset custody development, at the Strategy World 2026 forum hosted by Bitcoin treasury firm Strategy.

The service will allow Citi to hold native Bitcoin directly on behalf of institutional clients, rather than routing exposure through ETFs or structured products. Unlike ETF-based models used by many financial institutions, Citi plans to custody native Bitcoin assets directly, integrating them into the same risk, tax, and compliance workflows it applies to equities and bonds.

One Platform for Digital and Traditional Assets

The bank aims to let clients manage Bitcoin alongside securities and cash under a single safekeeping account, enabling cross-margining between digital and traditional assets. Surendran described the goal plainly: "We will be offering our clients a single service model across crypto, securities and money."

Citi plans to route Bitcoin transactions through existing instruction channels, including Swift messaging and API connections, while abstracting away UTXO and address management. The bank will also enhance tax reporting and compliance for Bitcoin, enabling institutional investors to manage digital assets similarly to traditional securities.

Citi has not disclosed specific custody technology partners, fee structures, minimum asset requirements, or a launch date beyond "later this year." The initial rollout will cover core custody and safekeeping, institutional-grade key management, and wallet infrastructure, with the rollout evolving to include advanced services that enhance asset segregation and collateral management.

Citi's securities services business currently oversees approximately $30 trillion in client assets, giving the initiative significant reach across institutional capital. Biswarup Chatterjee, Citi's global head of partnerships and innovation for services, said the custody solution has been in development for two to three years.

Citi's move comes as major financial institutions, including Morgan Stanley and JPMorgan, expand digital asset offerings and adapt infrastructure for 24/7 blockchain-based markets. A more favorable regulatory environment in the U.S. has prompted American banks to offer more services related to digital assets.

Sources:
CoinDesk: Citi and Morgan Stanley Expand Bitcoin and Crypto Custody Efforts
CNBC: Citi Targets 2026 Launch for Crypto Custody Service
Bitcoin Magazine: Citi to Launch Bitcoin and Crypto Custody Service in 2026