Citigroup announced it will launch a direct Bitcoin (BTC) custody service for institutional clients later in 2026, the bank's most concrete public commitment yet to holding native cryptocurrency on its own balance sheet.
Unlike ETF-based models used by many financial institutions, Citi plans to custody native Bitcoin assets directly, integrating them into the same risk, tax, and compliance workflows it applies to equities and bonds.
The announcement came from Nisha Surendran, head of digital asset custody development at Citi, speaking at Strategy World - an industry conference hosted by Bitcoin treasury firm Strategy.
Citi's securities services business currently oversees approximately $30 trillion in client assets, giving the initiative significant reach across institutional capital.
What Citi Is Building
The initial phase covers core custody and safekeeping, institutional-grade key management, and wallet infrastructure. Institutional clients will not handle private keys or wallet addresses directly - Citi will abstract those processes through its own systems.
Bitcoin transactions will route via Swift messaging and API connectivity, allowing Bitcoin instructions to travel through existing settlement rails.
The platform will operate 24/7, a meaningful operational adjustment for an institution built around traditional market hours.
Surendran said the bank intends to expand later to asset segregation, collateral management, and potential cross-margining - where clients could pledge Bitcoin as collateral within the same master account that holds government bonds or tokenized money market funds.
Read also: Governments And Private Equity Bought Bitcoin In Q4 While Advisors And Hedge Funds Sold
Context and Competitive Landscape
Citi's global head of partnerships and innovation, Biswarup Chatterjee, told CNBC in October 2025 that the bank had been developing this infrastructure for more than three years - a timeline suggesting the announcement reflects late-stage execution rather than early-stage planning.
At the same Strategy World event, Morgan Stanley separately outlined plans to launch a native cryptocurrency custody and exchange platform, initially allowing E*TRADE clients to buy and sell spot cryptocurrency through a partnership arrangement.
The parallel announcements from two major U.S. banks at a single event are notable. Citi has not disclosed specific custody technology partners, fee structures, minimum asset requirements, or a launch date beyond "later this year."
In December 2025, Citi analysts projected a base-case Bitcoin price of $143,000 in 2026. Bitcoin is currently trading near $67,000.