Citi to Launch Bitcoin Custody Service for Institutional Clients

Citi to Introduce Bitcoin Custody Service Later This Year

Citigroup is set to launch a bitcoin custody service aimed at institutional clients later this year. This service will allow clients to hold bitcoin alongside traditional financial assets, leveraging the newly introduced Custody+ platform from the bank.

Custody+ Platform Overview

The Custody+ platform is designed to streamline various financial processes, including custody, settlement, foreign exchange, and cash management. Although a specific launch date has not been established, Citi’s custody operation currently serves clients in over 100 markets worldwide, facilitating a seamless integration for institutions looking to invest in bitcoin without relying on separate crypto custodians.

“Custody+ is the product of a multi-year commitment to building infrastructure that matches the speed of our clients’ strategies,” said Amit Agarwal, head of custody at Citi Investor Services.

Technological Advancements

This initiative is part of a broader strategy by Citi to enhance its operational speed. The bank has implemented new technology to consolidate custody-related tasks into a more efficient single system, resulting in over 80% of these tasks being processed in real time. Additionally, processing times have been drastically reduced, with some operations cut by as much as 92%.

Competitive Landscape

Citi is not alone in its venture into the bitcoin custody market. Other significant financial institutions, such as BNY and Fidelity Digital Assets, have already launched similar services, with the latter focusing on providing custodial solutions to institutional clients. Recent regulatory changes have also paved the way for U.S. banks to enter the cryptocurrency custodial space more robustly.