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Citigroup Weighs Stablecoin and Crypto ETF Custody Services Citigroup Weighs Stablecoin and Crypto ETF Custody Services

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Citigroup Weighs Stablecoin and Crypto ETF Custody Services – Crypto News

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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 settlement services for crypto ETFs are currently dominated by Coinbase Global Inc.; Citigroup’s entry would heighten competition among traditional financial institutions.

Discussions remain preliminary, and the New York-based lender has not set a timeline or final commitment to launch the services, the report said.

This is an AI-generated article powered by DeepNewz, curated by The Defiant. For more information, including article sources, visit DeepNewz.

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