Citi Announces Direct Bitcoin Custody Services With Round-the-Clock Settlement

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TLDR

  • Citi has confirmed its intention to introduce an institutional Bitcoin custody service in 2026.
  • The bank plans to hold Bitcoin directly on its own balance sheet, rather than providing access through ETFs.
  • Institutional clients will be able to see their Bitcoin holdings together with conventional assets in consolidated reporting.
  • Citi will incorporate compliance, tax, and risk oversight into its current banking control frameworks.
  • The bank will facilitate 24/7 Bitcoin settlement to align with the non-stop trading market.

Citigroup has confirmed its strategy to incorporate digital assets into its fundamental banking infrastructure by 2026. The institution will custody digital assets directly on its balance sheet and enable uninterrupted settlement. This initiative will permit institutional clients to handle Bitcoin within their standard banking processes.

Citi to Integrate Bitcoin Custody Into Core Banking Systems

Citi will offer direct custody services to institutional clients, as opposed to exposure via ETFs. The bank will custody the underlying Bitcoin and control the cryptographic keys using its own internal systems. Clients will observe Bitcoin positions next to stocks and bonds in integrated reporting platforms. Compliance and tax handling will be processed through the bank’s established global control systems.

Leading this effort is Nisha Surendran, Head of Digital Asset Custody Development. She stated the bank’s goal is to bridge the operational divides between digital assets and traditional finance. Citi will supply wallet infrastructure and institutional-caliber key management. Clients will not be responsible for private keys or need to rely on third-party crypto custodians.

The bank will process Bitcoin transaction instructions via messaging and API connections. This model will integrate cryptocurrency transactions into proven settlement and reconciliation frameworks. Citi will also shift towards 24/7 operational support to match Bitcoin’s constant trading cycle. The bank will modify staffing and surveillance to accommodate all-day, every-day activity.

Platform Infrastructure to Support 24/7 Bitcoin Settlement

Citi will utilize its Citi Integrated Digital Assets Platform to link traditional monetary systems with blockchains. This internal platform will facilitate the movement of value between the bank’s own ledgers and public networks like Ethereum. Its interoperability engine will enable token transfers and consistent reporting across different systems. The platform was built to meet institutional risk requirements.

Citi is further developing its Citi Token Services for corporate customers. This service allows for tokenized deposits, enabling almost instantaneous worldwide transfers on authorized networks. The bank intends to link these tokenized deposits with its wider digital asset custody framework. This strategy aims to combine traditional and digital settlement pathways.

The bank has engaged in partnership talks with digital asset infrastructure companies, such as Metaco. Citi is also backing fintech firms that specialize in stablecoin payment solutions. These conversations are a component of its more extensive digital asset infrastructure plan. The bank affirmed it is still assessing external technology partners.

This launch comes after the 2025 enactment of the Guiding and Establishing National Innovation for Digital Assets legislation. The law established a regulatory structure permitting U.S. banks to custody digital assets. Citi pointed to this modernized regulatory landscape as a foundation for its custody strategy. The bank anticipates launching the integrated platform in 2026.