Source: Citigroup Official Site Global finance institution Citigroup wants to play a central role in the digital asset sector, and it is expanding its services to cover stablecoin custody and payment services. This expansion comes after policy changes in the U.S. have made it more welcoming for banks and financial institutions to integrate crypto and stablecoin solutions as part of their services. Crypto and stablecoin tokens have become a huge part of daily financial transactions in the U.S. since President Donald Trump returned to the White House. Top financial institutions are adding Bitcoin and other cryptocurrencies to their corporate treasury strategy as laws like the GENIUS Act and the One Big Beautiful Act (OBBA) have provided clarity for stablecoin issuers. The clearer rules have also boosted excitement in the crypto space, with many new tokens launching through presales. Retail investors are keeping an eye on the top presale tokens in 2025 , hoping to get in early on strong projects. What Stablecoin Custody and Payment Services Mean Stablecoins are cryptocurrencies whose value is tied to stable assets such as the U.S. dollar or government securities like the U.S. Treasury. Stablecoins have become popular because they make it possible to carry out fast, cost-effective, and secure transactions. Compared to traditional banking transactions, which take time to process international payments, stablecoin transactions happen quickly across the blockchain network. The most popular stablecoin by market capitalization and trading volume at the moment is Tether (USDT). According to a McKinsey report , the stablecoin market is currently worth about $250 billion and is predicted to reach a valuation of $2 trillion by 2028. Stablecoins are a cornerstone of the crypto industry, powering cross-border payments, crypto trades, and decentralised finance (DeFi). Why Citigroup Is Entering the Stablecoin Space Following the passage of the GENIUS Act, many corporations have ventured into the stablecoin space, and Citigroup believes this is the right time to join the trend. The GENIUS Act was signed in July 2025 to bring clarity to a grey area of digital finance. It is seen as one of the most important laws for digital assets. The law states that all stablecoin issuers must back their token with safe assets such as government bonds and cash. This legislature has now provided a clear picture of what dealing with digital assets would look like for traditional custody banks. In a statement, Biswarup Chatterjee, the global head of partnerships and innovation within Citigroup’s services division, said that the bank’s main focus is on securely storing and managing the reserves that are backing the digital tokens. The bank is already known for overseeing the treasury and payment operations of some of the largest corporations in the world. By relying on its existing infrastructure, Citigroup plans to securely store these high-quality assets while complying with established regulatory measures. The bank will also look to address issues regarding fraud prevention and security in the crypto industry. This move also comes after the bank recently announced that it is currently offering blockchain-based solutions that will allow account holders in London, New York, and Hong Kong to send tokenised U.S. dollars between themselves or convert them back to fiat currency for making instant payments. The bank is also planning to launch its own stablecoin, which could rival established tokens like Circle (USDC), which is worth $18 billion , and Tether (USDT). Through these services, the bank could reduce the costs and delays that come with cross-border payments, making a competitive and more reliable option for clients looking for quicker and more reliable payment solutions. Implications for the Banking and Crypto Industry For the banking industry, Citigroup’s expansion signals that global financial institutions see blockchain technology as part of the industry. It could also push other mainstream banks to adopt stablecoin and digital assets. For crypto firms, this move validates their activities; however, it brings competition. For crypto giants like Coinbase, Citigroup brings competition as it could offer lower custody fees and more innovative solutions. By relying on strong security measures, Citigroup would not only stabilize the crypto ecosystem but also boost trust in stablecoins. Citigroup’s expansion sheds more light on the growing convergence between the crypto industry and traditional banking systems. By leveraging its existing infrastructure and new regulations guiding the crypto industry, the bank plans to redefine how assets are stored and transferred in the digital economy. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
