Citigroup is poised to expand its footprint in the digital asset space by exploring further stablecoin custody and services surrounding ETF activity.
This comes after recent headlines made by financial institutions announcing efforts following the U.S. GENIUS Act legislation passed in the U.S. that enables issuers and custodians of stablecoins backed liquid and transparent short-term stablecoin reserves, such as in U.S. Treasuries.
The bank’s Global Head of Partnerships and Innovation, Biswarup Chatterjee, indicated in a recent interview that Citigroup may be focusing on providing appropriate safeguarding and custody solutions for stablecoins and other digital assets to its existing clients.
The latter would be catering to the rising demand for crypto ETFs, such as those linked to the underlying performance Bitcoin and Ethereum.
Currently, Citigroup is already experimenting with its own transfers and settlement of funds T+0 using blockchain technology between various regional branches.
Therefore, a potential launch of its own stablecoin and further exploration of tokenized deposits infrastructure to facilitate faster operations falls in line within the strategic objectives of similar large banks, such as J.P.Morgan and Standard Chartered.
