Citigroup eyes custody and payment services for crypto ETFs, stablecoins

Citigroup seeks to make a new foray into the cryptography and blockchain ecosystem with childcare and payment solutions for stablecoins and negotiated funds in exchange for crypto.

The American banking giant is considering a transition to cryptography custody, to stablecoin payments and other services, because the main banks and financial institutions are increasingly adopting crypto.

In a reportReuters quotes a senior executive of Citigroup saying that the bank wants to exploit the crypto momentum while Washington reports a regulatory change pro-Crypto. Bank of America, Morgan Stanley, JP Morgan and Fiserv are among the main financial companies adopting an aggressive approach to their expansion in cryptocurrency space.

The historic law of Stablecoin and other regulatory guidelines, especially for banks, have helped highlight the opportunity between stablecoins and cryptography guard.

“Providing childcare services for these high -quality assets that support the stables of stables is the first option we are examining,” said Biswarup Chatterjee, a global partnership and innovation manager at Citigroup.

Citigroup Eyes Crypto Etfs Custody Market

Citi already offers an asset solution in tokens, using blockchain for American payments and transfers between bank accounts in London, New York and Hong Kong. The service allows 24 -hour transfers.

As well as stableCiti plans to seize the negotiated funds in exchange for crypto as a care provider.

This area of the expanding digital asset market has received a notable traction since the Securities and Exchange Commission approved the first Crypto-Spot ETF with Bitcoin (BTC) ETF Spot in 2024. The request pushed the total net assets in the Place Bitcoin ETF More than $ 158.6 billionThe largest ETF BTC being the BlackRock Ishares Bitcoin Trust with $ 91 billion in net assets.

The other issuers include Fidelity Investments, Grayscale, Ark & 21Shares and Bitwise.

“There must be custody of the equivalent quantity of digital currency to support these ETFs,” added Chatterjee in an interview.

Citi’s plans will see him enter a market currently dominated by the crypto exchange corner based in the United States.

The giant crypto serves as a guard for more than 80% of existing crypto ETF. Citi and State Street revealed plans for the first time to enter the cryptography space in February, coinciding with the launch by Citi of the Cidap Asset Digital Platform.