Citigroup has officially confirmed plans to launch institutional bitcoin custody by the end of 2026, marking a significant expansion of traditional finance's crypto infrastructure. The bank's institutional infrastructure arm launched Custody+, a new platform that combines crypto and traditional securities in one framework for clients. According to Business Wire, the bitcoin custody service will start with bitcoin and will be part of the broader Custody+ suite, which does not yet have a specific launch date. The move could make it easier for institutions to hold bitcoin through a major bank instead of relying on separate crypto custodians, leveraging Citi's existing infrastructure that serves clients in more than 100 markets, including 62 markets where it runs its own custody network.
Citi's Custody+ platform has been built on the bank's Single Event Processing (SEP) technology, which processes more than 80% of the bank's asset-servicing events in real time. As reported by Business Wire, the system processes asset-servicing transactions through one continuous flow across Citi's domestic and international custody networks. Within the United States, SEP has cut processing times for voluntary corporate actions by as much as 92%, while 96% of voluntary events are completed in under two hours. The platform provides automated hedging, real-time foreign exchange execution, and cash tools including instant position updates and liquidity sweeps. Chris Cox, head of Investor Services at Citi, stated that the bank invests more than $2 billion annually in its platform strategy, focusing on speed, scale and availability.
Two financial institutions managing more than $1 trillion each approved crypto products this summer, marking a significant shift in institutional attitudes toward digital assets. According to reports from CoinDesk, Bitwise CEO Hunter Horsley noted that these large firms expanded crypto access even during bear market conditions, representing a departure from previous resistance. Horsley stated that "this year everyone just put on the crypto jersey," emphasizing the widespread adoption across the financial services sector. The latest developments show this trend continuing with major banks like Citi now entering the crypto custody space, demonstrating how traditional finance giants have moved from resisting digital assets to building and enabling them through custody, tokenization and regulated trading.
Beyond Bitcoin custody, Citi has been developing extensive tokenization products and services. In June, the bank disclosed plans to offer tokenized depositary receipts linked to shares in private companies to wealthy and institutional clients, initially targeting investors outside the United States. According to Business Wire, Citi's tokenization work follows research that placed the global tokenized securities market at about $17 billion with projections of a base-case increase to $5.5 trillion by 2030. The bank estimates that 10% of Treasury bills and 3% of publicly traded stocks could become tokenized by 2030, while stablecoin growth could generate about $1 trillion in additional demand for U.S. Treasuries. Citi's tokenization platform also includes tax-document processing supported by artificial intelligence, which has reduced processing times by as much as 70%.
The relationship between traditional finance and cryptocurrency has fundamentally shifted from the previous "long bitcoin, short the bankers" mentality. As reported by CoinDesk, Sygnum Chief Investment Officer Fabian Dori confirmed that "the old 'long bitcoin, short the bankers' trade is over: banks have moved from resisting digital assets to building and enabling or distributing them through custody, tokenization and regulated trading." This evolution is attributed to client demand and clearer regulatory frameworks, with the change described as structural rather than cyclical. The latest developments demonstrate this structural shift with Citi actively building crypto infrastructure alongside traditional services, combining Bitcoin and securities services in the same operational environment.
