Citi Plans to Make Bitcoin Fit for Banks
Citigroup is developing a service that will let investors hold bitcoin in the same secure accounts they use for stocks and bonds. The goal is to make digital currency feel as safe and easy to manage as any other asset.
How It Works
- Top‑grade key protection and a wallet system modeled on traditional banking.
- Clients simply tell Citi what they want; the bank handles all technical steps—no need to learn wallets or manage private keys.
Why It Matters
- Customer demand: Many investors want bitcoin exposure but dislike the hassle of wallets or one‑time addresses.
- Risk management: Combining crypto holdings with other investments can improve diversification.
Master Account Vision
Citi plans a single master account that will hold:
- U.S. Treasury bills
- Foreign bonds
- Tokenized money‑market funds
- Bitcoin
This structure enables using one asset as collateral for another, whether the counterpart is a traditional security or a crypto token.
Industry Context
- Morgan Stanley is exploring exchange‑traded products for bitcoin, Ethereum, and Solana, and adding crypto trading to its online platform.
- Banks are building proprietary technology instead of renting from third‑party providers.
Existing Infrastructure
Citi has built private blockchains for internal use and is expanding to public networks as regulations improve. The current Citi Token Services for cash project moves money 24/7 using blockchain—crucial as investors demand round‑the‑clock access to assets like bitcoin.
Market Trends
The New York Stock Exchange announced a 24/7 trading venue that will use blockchain to trade tokenized stocks and ETFs. Citi’s initiative reflects a broader industry trend toward integrating digital assets into everyday banking.
