Citi’s Bitcoin Custody Service Announcement
Citi has announced plans to introduce a Bitcoin custody service as part of its broader digital asset strategy, which will be integrated with its existing traditional asset custody services. This new offering is set to be included in a platform called Custody+, which comprises various custody and settlement solutions aimed at enhancing operational efficiency for clients.
Details of the Initiative
The latest updates were revealed on Tuesday, building on Citi’s previous disclosures made in October regarding its intention to provide institutional Bitcoin custody by 2026. According to Amit Agarwal, Head of Custody at Citi Investor Services, this initiative is a culmination of several years dedicated to developing robust infrastructure that aligns with the dynamic strategies of their clientele. He emphasized that each feature of Custody+ is crafted to assist clients in navigating the increasingly complex financial landscape.
Operational Improvements
Citi also noted a significant operational improvement, reporting that over 80% of the transactions it processes for asset servicing are now conducted in real time. Additionally, their Citi Token Services enables clients to transfer tokenized deposits with remarkable speed, around the clock, in select markets. Agarwal highlighted that Custody+ is a proactive response to the shifting demands of the industry as it transitions from outdated systems to more advanced technological frameworks.
Industry Context
This announcement arrives amid a wave of advancements among major financial institutions venturing further into the digital asset space. Earlier this year, the New York Stock Exchange disclosed its collaboration with Citi and BNY to create a blockchain-based platform designed for tokenized stocks and exchange-traded funds (ETFs). In a further nod to the growing importance of cryptocurrency, Morgan Stanley recently sought a national trust bank charter for a new entity focused on delivering crypto custody services.
