Citigroup, one of the world's most established financial institutions with approximately $2.5 trillion in assets, has officially announced plans to integrate Bitcoin into its traditional banking infrastructure. The bank aims to launch Bitcoin services for institutional clients in 2026; it is reportedly close to completing internal development and testing that has been ongoing for 2 to 3 years.
A $30 Trillion Bridge
The vision behind the project was most clearly articulated by Nisha Surendran, Citi's Head of Digital Asset Custody Development. Speaking at the Strategy World conference organized by Bitcoin treasury company Strategy, Surendran emphasized that the initiative is part of a strategy to "bank" Bitcoin. Considering that Citi currently manages $30 trillion in customer assets, the significance of extending this infrastructure to digital assets becomes clearer.
Planned services include secure Bitcoin custody solutions, institutional-level wallet management, private key operations, and transaction address management. In addition, reporting and compliance systems will be implemented, allowing Bitcoin positions to be tracked on the same platform as stocks, bonds, and money market instruments. This will enable institutional investors to seamlessly integrate their crypto assets into existing portfolio management and tax compliance processes.
Institutional demand and ETF flows accelerated the process
Citi's move is not coincidental. The increasing interest of institutional investors in Bitcoin, and especially the acceleration of capital flows to spot Bitcoin ETFs, is forcing large banks to establish infrastructure in this area. In its predictions published last December, the bank foresaw that Bitcoin could reach $143,000 in 2026; in the bull scenario, this figure rose above $189,000, while in the bear scenario, the level of $78,500 was indicated. When it is remembered that Bitcoin was trading around $88,000 at the time these predictions were made, it is better understood how volatile the market is and how critical institutional infrastructure is in managing this volatility.
Morgan Stanley is also entering the arena
This transformation in the corporate finance world is not limited to Citi. Morgan Stanley also announced at the same conference that it will establish a cryptocurrency custody and exchange platform. Initially, E-Trade clients will be able to conduct spot crypto transactions through a partnership; the fully integrated platform is expected to be launched within the next year. Morgan Stanley, which has an asset base of $8 trillion, is also working on crypto yield and loan products; the integration of assets outside the platform into the system is also on the agenda. As a result, these initiatives, shaped by the triangle of secure custody, regulatory compliance, and facilitated access, are paving the way for investors to confidently step into this asset class by bringing Bitcoin's operational risks to institutional standards. This could herald a period in which the cryptocurrency market has matured and Wall Street is choosing to enter the arena instead of remaining a spectator.
