Citi, one of the world’s largest and oldest financial institutions, is preparing to launch a crypto custody service by 2026. This move shows that big, traditional banks are beginning to take digital assets seriously. For many years, banks stayed away from crypto because of fears over regulation, volatility, and security risks. But things are changing fast, and the fact that a major bank like Citi is entering this space signals a big shift in how the financial world views crypto.

Citi’s plan is simple but powerful. The bank wants to create a secure platform for storing digital assets, especially for large clients like asset managers, companies, and institutional investors. Crypto custody means taking responsibility for keeping digital assets safe, protected, and recoverable. Many institutions have avoided crypto because they did not trust existing crypto platforms. With a bank like Citi entering custody, that trust gap begins to close.

Why Citi Is Doing This Now

Citi’s timing is not random. The global financial system is slowly moving toward digital assets, and banks do not want to be left behind. More companies are adding crypto to their balance sheets, more investment firms are exploring tokenized assets, and governments are working on regulations to control and protect the digital asset market. All these changes create pressure on major banks to offer crypto services.

Another reason is demand. Institutional investors have been asking for safer, regulated ways to store and manage crypto. Many institutions prefer to work with banks they already trust instead of newer crypto companies. By launching crypto custody, Citi is responding to this demand and positioning itself ahead of other banks that may still be watching from the sidelines.

Citi is not alone. Several major banks around the world have been quietly exploring digital asset custody. The difference is that some are only testing the waters, while Citi is now openly announcing a full service with a clear timeline. This kind of confidence from a major global bank is a strong signal that digital assets are becoming part of mainstream finance rather than something that only belongs on crypto exchanges.

Banks realized that crypto is not going away. Even with market crashes, regulatory pressure, and negative headlines, the adoption rate keeps increasing. Younger generations are building their wealth with digital assets. Large funds are looking at blockchain technology as a more efficient system for transactions, trading, and record-keeping. Citi sees this trend and wants to secure its place early before the digital asset industry becomes dominated by other competitors.

Why Crypto Custody Matters

Crypto custody might sound simple on the surface, but it is one of the most important parts of digital asset management. Many people have lost their crypto due to hacks, forgotten passwords, or failed exchanges. Institutions cannot take these risks. They need a system that meets strict security standards and regulatory expectations. That is where a bank like Citi becomes important.

By offering custody, Citi will take responsibility for protecting private keys, managing backups, and safeguarding assets from theft or loss. This gives large investors confidence that their digital assets are safe. It also helps companies that want to invest in crypto but cannot rely on personal wallets or small crypto firms. For many institutions, banking-grade custody is the only way they will ever enter the crypto market.

Citi’s entry into crypto custody sends a clear message: digital assets are moving toward a more mature and regulated phase. When big banks join the industry, it usually leads to more structure, better rules, and wider acceptance. This could help attract more traditional investors who have been watching from a distance.

Over time, services like this could also support the growth of tokenization, where real-world assets such as bonds, stocks, and property are turned into digital tokens on blockchain networks. Many financial experts believe tokenization will eventually become a standard feature of global finance. If that happens, banks like Citi will already be prepared with the right infrastructure.

For everyday crypto users, this does not mean banks are replacing exchanges. Instead, it means the crypto world is expanding. More players entering the space means more safety, more regulation, and stronger trust for the entire market.

The Road Toward 2026

Citi has made it clear that it wants to take its time and build the service properly. The bank is working through regulatory approvals, security systems, and technical requirements. Crypto custody is not a simple product. It must meet strict financial laws and global standards. Citi wants to avoid rushing, which is why it plans to roll out the service fully by 2026 instead of trying to launch immediately.

This slow and steady approach is common for major banks. Unlike crypto startups that move fast, banks prefer to move carefully, especially with new technologies. But once they enter, they usually stay for the long term. Citi’s plan shows that the bank is serious about crypto and sees it as an important part of future finance.

Citi’s decision to launch a crypto custody service in 2026 marks a major turning point for the digital asset industry. It shows that banks are no longer ignoring crypto—they are preparing to support it, secure it, and integrate it into global finance. This move could encourage more institutional investors to finally step into the crypto world, knowing that a trusted bank is offering protection and support.

As adoption grows and regulations become clearer, more banks may follow Citi’s path. For crypto, this is a sign of maturity. For investors, it is a sign of rising trust. And for the financial world, it is another reminder that digital assets are shaping the future.