Citigroup is considering offering custody and payment services for digital assets, starting with the U.S. Treasuries and cash reserves that back regulated stablecoins. 

Biswarup Chatterjee, global head of partnerships and innovation for Citi’s services division, told Reuters the bank is also evaluating custody solutions for assets tied to crypto exchange-traded products, including bitcoin and ether ETFs.

This story is an excerpt from the Unchained Daily newsletter.

“There needs to be custody of the equivalent amount of digital currency to support these ETFs,” Chatterjee said, noting that Coinbase currently dominates the sector.

The move follows recent U.S. legislation requiring stablecoin issuers to hold high-quality reserves, opening opportunities for traditional banks to serve as custodians. Citi is also exploring stablecoin-based payments and conversion services for faster transactions.