Another Shift on Wall Street: Citi Aims to Roll Out Crypto Custody Solutions in 2026

In light of Morgan Stanley’s recent guidance to clients on setting aside 2-4% of their investment portfolios for digital currency, another major Wall Street bank is shifting towards the crypto sector. Citigroup has revealed its intention to introduce digital asset custody services by 2026. JP Morgan and US Bank are already providing crypto infrastructure solutions. It appears that other banks may now be inclined to join this trend!

Citi Bank’s Global Head of Partnerships and Innovation, Biswarup Chatterjee, has affirmed the bank’s plans to tap into the crypto arena with custody options that have been in the works for two to three years, as per a CNBC report. This initiative will allow the bank to manage Bitcoin and ETH for asset managers and other institutional clients.

“We have multiple explorations in progress, and we are uptrend that in the forthcoming quarters, we can present a credible custody solution for our asset managers and other clients,” Chatterjee remarked.

BREAKING: $2.3 Trillion Citibank will roll out crypto custody services in 2026. pic.twitter.com/DLF4JpEA8g

— Ash Crypto (@Ashcryptoreal) October 13, 2025

EXPLORE: Wall Street Pivots: Morgan Stanley Officially Recommends Exposure To Crypto, Especially Bitcoin

Is Citi Prepared To Introduce Its Own Stablecoin?

In addition to custody services, Citi may be investigating the launch of its own stablecoin. In July 2025, CEO Jane Fraser disclosed the bank’s efforts in stablecoin exploration, while emphasizing Citi’s commitment to tokenized deposits that present more immediate practical uses.

Discussing the bank’s prospective stablecoin vision, Chatterjee mentioned that stablecoins could offer significant benefits in areas with less developed financial systems. The bank is also weighing custody and payment solutions for third-party issued stablecoins.

Citigroup anticipates that the total issuance of stablecoins could hit $1.9 trillion in a base case scenario and reach $4 trillion in an bullish outlook by the year 2030.

Meanwhile, McKinsey estimates that around $250 billion in stablecoins have been generated to date, mainly for facilitating digital currency transactions.

MUST WATCH

“According to CitiBank, by 2030
Stablecoin issuers will be the largest holders of US Treasuries in the world”

— Senator Bill Hagerty

When stablecoin legislation eventually passes, and global access to US dollars expands,

YOU… pic.twitter.com/bb6ByXhjWK

— Jonnie King (@JonnieKing) May 19, 2025

DISCOVER: 15+ Upcoming Coinbase Listings to Watch in 2025

Morgan Stanley Officially Advises Engagement With Crypto

One of the longest-standing investment entities, Morgan Stanley, has urged its clients to consider allocating 2-4% of their investment portfolios to cryptocurrency. Emphasizing Bitcoin’s status as a “scarce asset, comparable to digital gold,” Morgan Stanley’s recommendation marks a shift in Wall Street’s approach to digital assets.

On 5 October 2025, Morgan Stanley’s Global Investment Committee (GIC) officially published guidelines for portfolio allocations, advising “opportunistic growth portfolios to include up to 4% in crypto.” Concurrently, Bitcoin’s price (Bitcoin) surged to a new all-time high overnight, reaching approximately $125,700 during the Asia trading session on Sunday before retracting to the lower $123,000 range.

Commenting on Morgan Stanley’s noteworthy shift, Bitwise CEO Hunter Horsley stated, “This is substantial. The new Special Report from Morgan Stanley GIC: ‘we aim to assist our Financial Advisors and clients, who might flexibly allocate to cryptocurrency within their multi-asset portfolios.’ GIC oversees 16,000 advisors managing $2 trillion in assets and wealth for clients.”

Horsley believes that crypto asset is entering its phase of mainstream acceptance.

EXPLORE: Best Crypto To Buy in Q4 2025

 

The post Another Wall Street Pivot: Citi Plans To Launch Crypto Custody Services In 2026 appeared first on 99Bitcoins.