Citi has announced that it will launch digital asset custody services later this year, with Bitcoin as the first custody asset.

The service will be built on Citi's unified digital asset infrastructure, covering institutional-grade custody, private key management, and wallet infrastructure; clients will not need to handle wallets, private keys, or one-time on-chain addresses themselves, as these operations will be managed by Citi within the banking system.

Citi plans to integrate Bitcoin positions into its existing traditional asset service framework, including client reporting, tax processing, compliance monitoring, and operational workflows. The bank stated that clients want to manage crypto assets, securities, and cash under the same service model, rather than using multiple accounts and infrastructures.

Citi's custody business covers over 100 markets, with 62 being self-custody markets; the company previously disclosed that its services handle trillions of dollars in cross-currency, market, and time zone transactions daily, and is promoting liquidity and securities transfer around the clock through Citi Token Services.

This is not Citi's first foray into digital assets. The bank has launched Citi Token Services, developed digital asset custody capabilities, and connected to new blockchain networks, while expanding client access to crypto assets, tokenized funds, and digital bonds in its markets and wealth management businesses.

Market mechanism: Buyers are asset management institutions, corporate treasury, and high-net-worth clients who wish to hold Bitcoin but do not want to manage private keys and on-chain operations; sellers include exchanges, over-the-counter traders, and liquidity providers. Citi undertakes institutional assets and deposits through custody, reporting, compliance, and settlement interfaces, facing competitive pressure from traditional crypto-native custodians regarding large bank client relationships and compliance capabilities; Bitcoin spot liquidity, institutional execution, and collateral services will benefit.

Source: Public Information