Key Takeaways
- Citigroup is considering launching its stablecoin, payments, and digital asset custody solutions.
- Several U.S. institutions are entering the crypto custody and stablecoin race.
- The stablecoin market is currently valued at over $284 billion.
Wall Street continues to clamour for digital assets as a multi-trillion-dollar behemoth, Citigroup, reveals plans to launch custody and payment services for stablecoins and crypto.
Stablecoin Services
As per reports, Citigroup is looking to capitalize on the latest pro-crypto regulatory reforms in the U.S. and has begun exploring launching its stablecoin custody services.
Under the GENIUS Act, stablecoin issuers will be required to reserve assets like cash and U.S. Treasuries.
This opens up a massive opportunity for Wall Street’s banking giants to serve as custodians and administrators of these assets.
It also considers custody services for digital assets that underpin spot crypto digital exchange-traded funds (ETFs).
Crypto exchange Coinbase serves as custodian for more than 80% of Bitcoin and Ethereum ETFs.
Citigroup recently confirmed it is investigating the creation of its stablecoin. The firm leverages blockchain to tokenize U.S. dollar payments between New York, London, and Hong Kong 24 hours a day.
It has plans to upgrade these systems to allow clients to send stablecoins between accounts or convert them for instant payments.
The Big Push
The era of institutional adoption is here.
When spot Bitcoin ETFs launched, it was considered a make-or-break moment for the crypto sector.
One, it finally signalled that BTC is not a security, and second, it granted institutional investors access to the market. Bitcoin and Ethereum ETFs currently command almost $200 billion in combined assets.
With this momentum, early adopters such as Michael Saylor are now hailed as pioneers as more and more public companies tap into BTC as a strategic reserve asset.
Coupled with favorable regulatory tailwinds in the U.S., with its sweeping pro-crypto reforms, the digital asset sector is in full bloom.
Moreover, stablecoins have finally realised their potential.
This latest reveal from Citigroup underscores a growing trend of major entities from legacy sectors backing crypto and validating its capacity to transform the economy.
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Eddie is a gaming and crypto writer at CCN. Covering the often weird and wonderful world of Web3 with an adoring, but skeptical eye.
Prior to CCN, Eddie has spent the past seven years working his way through the crypto, finance, and technology industry. He began with PR and journalism with Bitcoin PR Buzz and BitcoinNews.com, eventually working his way to become a copywriter with a dozen firms, including the likes of Polkadot before returning to journalism in 2023.
Having studied Radio production and journalism at University in the UK, Eddie spent a few years making podcasts and presenting on a local London radio station as he built up his writing chops.
A lifelong skateboarder, Eddie can often be found at the skatepark or touring the streets looking for something new to try. That, or kicking back playing JRPGs on his original PSP.
