Citi Launches Bitcoin Custody Service for Institutional Investors

Citi has announced the upcoming launch of its Bitcoin custody service, Custody+, which is expected to go live later this year. This new service will allow institutional investors to manage both traditional assets and Bitcoin within a single framework, eliminating the need for separate systems.

The announcement was made on Tuesday, with Citi highlighting that Custody+ is designed to enhance operational efficiency for its clients. Chris Cox, Head of Investor Services at Citi, stated that the service aims to provide continuous visibility and execution across various asset servicing transactions, including settlement and data management.

Custody+ is part of Citi's broader strategy to integrate digital assets into its existing financial services. This initiative follows a trend among American banks to deepen their involvement in the digital asset space, spurred by favorable regulatory developments. The bank has been working on this custody solution for several years and is also exploring the issuance of a stablecoin in collaboration with other major banks.

As Bitcoin approaches the $65,000 mark, the timing of Citi's announcement aligns with a broader institutional interest in cryptocurrency. BlackRock has also reiterated its recommendation for a 1-2% allocation to Bitcoin in investment portfolios, indicating a growing acceptance of digital assets among traditional financial institutions.