Banks Expand Cryptocurrency Offerings Amid Rising Client Demand

Citi's recent announcement has marked a significant milestone in the expansion of institutional investment in cryptocurrencies. The banking giant plans to launch institutional bitcoin custody later this year, which will provide a secure and regulated way for institutions to hold and trade digital assets.

The initiative is part of Citi's broader push to integrate digital assets into its traditional financial infrastructure. This includes the development of bank-grade key management and wallet infrastructure, as well as the integration of cryptocurrencies into existing reporting and control frameworks.

Citi's head of digital asset custody product buildout, Nisha Surendran, has stated that the goal is to 'make bitcoin bankable.' To achieve this, Citi will provide clients with a single service model across cryptocurrencies, securities, and cash. This means that clients will be able to instruct transactions via SWIFT, APIs, or user interfaces, and receive reporting and tax workflows similar to those for traditional assets.

Morgan Stanley is also expanding its crypto trading, lending exploration, and tokenized products offerings to mainstream wealth clients. The banking giant has filed for bitcoin, Ethereum, and Solana exchange-traded products and is exploring wallet technology across its wealth platform.