Citigroup ($C), a representative investment bank on Wall Street, is reportedly reviewing its entry into cryptocurrency custody and payment services. With regulations approved during the Trump administration and pro-industry legislative movements providing a foundation for market expansion, Citigroup views this as a future growth opportunity and has begun reviewing related infrastructure.
Biswarup Chatterjee, head of Citigroup's service division, revealed in an interview with Reuters that "the primary targets for custody will be high-quality assets backing stablecoins" while outlining the initial roadmap. The department is responsible for cash management, payment, and financial solutions for multinational corporations.
Particularly, the custody service is exploring options beyond simple cryptocurrencies, including Bitcoin (BTC) and Ethereum (ETH) based exchange-traded funds (ETFs). Chatterjee emphasized that "to support these ETFs, digital asset storage of equivalent value is essential." They believe that without physical-based custody solutions, it would be difficult to establish ETF structure credibility.
With the rapid growth of the first approved US spot Bitcoin ETFs in early 2024, custody demand has also risen correspondingly. According to crypto asset analysis platform Bitbo, the total holdings of 12 US spot Bitcoin ETFs reach approximately 1.3 million BTC, which is about 6.2% of the currently circulating Bitcoin supply.
Among these, BlackRock's ($BLK) iShares Bitcoin Trust (IBIT) has recorded the largest scale in the industry, with a market value estimated at around $88 billion (approximately 122.32 trillion won).
Citigroup's move reflects how traditional financial institutions are more actively entering the digital asset ecosystem. Particularly, the pro-cryptocurrency stance of the Trump administration and subsequent regulatory adjustments have stimulated large financial institutions to move beyond cautious review to direct business strategies. This suggests the potential for cryptocurrency financial services to become a key competitive arena in the global banking industry.
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