Citigroup is exploring providing stablecoin custody and other services, a top executive told Reuters, in a further sign sweeping policy changes in Washington are spurring major financial firms to expand into the cryptocurrency business.
The U.S. bank is among a handful of traditional institutions, including Fiserv and Bank of America, considering pushing into stablecoins after Congress passed a law paving the way for the crypto tokens to become widely used for payments, settlement, and other services. Stablecoins are cryptocurrencies pegged to a fiat currency or another asset, commonly the U.S. dollar.
That law requires stablecoin issuers to hold safe assets such as U.S. Treasuries or cash to back the digital coins, creating opportunities for traditional custody banks to provide safekeeping and administration of the assets.
„Providing custody services for those high-quality assets backing stablecoins is the first option we are looking at,” Biswarup Chatterjee, global head of partnerships and innovation for Citigroup’s services division, said in an interview.
A McKinsey study, opens new tab estimates about $250 billion in stablecoins have been issued so far, but are mainly used to settle cryptocurrency trades. While Citigroup said last month it was considering issuing its own stablecoin, the bank has not previously discussed its broader digital asset plans.
Citi is also exploring custody services for digital assets that back crypto-related investment products. For example, many asset managers have launched ETFs tracking the spot price of bitcoin since the Securities and Exchange Commission authorized such products last year.
Banking 4.0 – „how was the experience for you”
„To be honest I think that Sinaia, your conference, is much better then Davos.”
Many more interesting quotes in the video below:
