Citigroup has announced its entry into the cryptocurrency space by offering custody services for stablecoins and related ETF assets, following new U.S. regulations.
The move is poised to bolster stablecoin legitimacy and attract institutional investors, potentially impacting a projected $3.7 trillion stablecoin market by 2030.
Citigroup has announced plans to offer custody services for stablecoins, following new U.S. laws aimed at fostering mainstream adoption. This development marks the bank’s expansion into digital asset management.
Citigroup’s move involves key figures such as Biswarup Chatterjee, who stated they will provide custody for “high-quality assets backing stablecoins.” Changes include expanded services in digital asset management.
Citigroup Enters Stablecoin Management with Custody Services
The introduction of custody services by Citigroup is a significant shift, potentially impacting the $3.7 trillion stablecoin market forecasted by 2030. The initiative may strengthen institutional trust and adoption.
Experts suggest that the new custody services could enhance regulatory compliance and institutional participation. Past trends show such moves increase both liquidity and investment in digital tokens.
Citigroup Joins JPMorgan, BNY Mellon in Digital Asset Push
Citigroup’s entry into stablecoin custody follows similar actions by JPMorgan and BNY Mellon, which drove liquidity and institutional flows. These events historically boosted Bitcoin and Ethereum markets.
According to Kanalcoin insights, Citi’s stablecoin custody services may lead significant market influence, mirroring past institutional adoption trends. Such shifts often improve engagement with digital and traditional financial systems.
Biswarup Chatterjee, Global Head of Partnerships and Innovation, Citigroup Services, stated, “Providing custody services for those high-quality assets backing stablecoins is the first option we are looking at.” – Reuters
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