Citigroup Weighs Stablecoin and Crypto ETF Custody Services
Citigroup Inc. is exploring the launch of custody, payment and conversion services for stablecoins and cryptocurrency exchange-traded funds, including Bitcoin ETFs, according to a Reuters report citing people familiar with the plans.
The proposal would let the bank safeguard the digital assets underlying ETFs, settle transactions and facilitate instant stablecoin payments for clients. Citigroup’s initial focus is on holding the high-quality reserves that back regulated stablecoins, aligning with internal risk standards.
The deliberations come after a U.S. law took effect requiring stablecoin issuers to fully back their tokens with cash or Treasuries, an effort to shore up consumer protection in the fast-growing market. Custody and…
