Citi to Launch Native Bitcoin Custody for Institutions Before Year-End

<p>Citi confirmed plans to launch native Bitcoin custody services for institutional clients before the end of 2026, extending the bank's crypto infrastructure offerings and joining a wave of major global banks moving directly into crypto custody as core market infrastructure this year. The move positions Citi alongside other major financial institutions that have expanded from crypto-adjacent services toward directly holding and safeguarding client Bitcoin holdings.</p>
<p>Native custody, as opposed to relying on third-party custody providers, gives Citi direct control over the security infrastructure protecting client Bitcoin holdings rather than outsourcing that function to specialized crypto-native custodians. That approach requires significant investment in security infrastructure -- cold storage systems, multi-signature or multi-party computation key management, and comprehensive insurance coverage -- but allows the bank to capture custody fee revenue directly and maintain tighter control over the client relationship.</p>
<p>Citi's move follows a broader 2026 trend of major banks treating crypto custody as essential infrastructure rather than an optional or experimental service line. Standard Chartered has similarly expanded its institutional crypto custody capabilities, becoming the first Global Systemically Important Bank to power institutional crypto custody specifically in Hong Kong, extending its regulatory-compliant custody infrastructure into one of Asia's most active crypto hubs.</p>
<p>The institutional custody buildout has coincided with substantial growth in the crypto insurance market supporting these custody operations, with institutional crypto insurance growing 140% year-over-year following the 2025 passage of the GENIUS Act, which standardized how exchanges and custodians must demonstrate proof of reserves and insurance coverage. The global crypto insurance market, valued at approximately $9.49 billion in 2025, is projected to reach $192.72 billion by 2033 as institutional participation and custody infrastructure continue expanding.</p>
<p>For institutional clients, having a globally recognized bank like Citi offer native Bitcoin custody provides an alternative to relying solely on crypto-native custody specialists like Coinbase Custody or BitGo, potentially simplifying operational relationships for clients who already maintain broader banking relationships with Citi. As more major banks follow this pattern of building native crypto custody capabilities, the competitive landscape for institutional Bitcoin custody looks set to become increasingly crowded through the remainder of 2026.</p>