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Citigroup has announced plans to enter the stablecoin reserve asset custody and crypto-linked ETF custody businesses in response to the newly enacted GENIUS Act in the United States.
The bank will start by providing custody for regulated stablecoin reserve assets backed by cash and U.S. Treasuries, in line with the federal law passed in July. The GENIUS Act requires issuers to maintain 100% backing in high-liquidity assets, setting clear federal standards for the quality and location of reserves, a move expected to make stablecoins more accessible for institutional investors.
Institutional Access Boosted by Regulatory Clarity
The GENIUS Act addresses long-standing regulatory uncertainty and reduces operational risks in stablecoin custody. It also follows the end of the “Operation Choke Point 2.0” policy, which had discouraged banks from entering crypto businesses.
Citi’s move aligns with the rapid growth of regulated crypto products, such as BlackRock’s iShares Bitcoin Trust (IBIT).
Speaking to Reuters, Biswarup Chatterjee, a Citi executive, stressed that the bank prioritizes compliance, asset security, and integration with the traditional financial system.
Citi Stablecoins and what the Genius Act made possible👀⬇️ https://t.co/RwAsRjVf6Z pic.twitter.com/AUIgtLfF5x
— Chad Steingraber (@ChadSteingraber) August 14, 2025
Global Payments and ETF Custody Expansion
Leveraging its existing international infrastructure, Citi plans to expand its 24/7 blockchain-based tokenized U.S. dollar payment network linking New York, London, and Hong Kong. The system will enable instant cross-border settlements and immediate conversion between stablecoins and fiat currencies.
In addition, Citi will enter crypto ETF custody, incorporating multi-signature wallets, cold storage, and real-time threat monitoring to exceed industry security standards. All underlying assets will be verified before custody, with particular attention to minimizing counterparty risk for volatile products like spot Bitcoin ETFs.
Blending Traditional Finance and Blockchain
Citi will not hold cryptocurrencies directly, instead focusing exclusively on regulated backing assets. This differentiates the bank from fintech custodians and caters to stability-minded institutional clients.
The move targets a stablecoin settlement market projected to reach $15 trillion annually by 2030, putting Citi alongside peers like JPMorgan and Bank of America, which are also ramping up blockchain-related services.
Industry analysts see this as a pivotal step toward making stablecoins a practical tool for international trade and remittances.
