Citigroup will provide custody and settlement services to Stubcoin and crypto ETFs, according to senior executives who spoke with Reuters.
Banks are primarily focused on managing high-quality assets that favor stubcoin, but are also investigating custody of digital assets that favor cryptocurrency-based investment products such as Bitcoin Spot ETFs.
Citigroup also aims to use steel coins to develop solutions that increase the speed and efficiency of cross-border payments and provide immediate settlement. The bank currently operates a blockchain-based payment network that allows for 24/7 tokenized dollar transfers between New York, London and Hong Kong. The new plans include Stablecoin transfers and the ability to convert them to dollars for immediate payments.
Citigroup’s actions follow a change in sweep policy in Washington, and last month, the US Congress paved the way for widespread use of stubcoins in the region, such as payments and settlements. The new law requires Stablecoin issuers to be backed up by safe assets such as US Treasury bonds and cash. This creates new business opportunities for traditional custodian banks.
“We are pleased to announce that Biswarup Chatterjee, Head of Global Partnerships and Innovation at Citigroup Services, said: The bank is also considering providing the storage of digital assets needed for products such as Bitcoin Spot ETFs, which were approved by the US Securities and Exchange Commission last year.
Please note that BlackRock’s Ishares Bitcoin Trust, the largest Bitcoin ETF in the market, has a market value of around $90 billion, according to Chatterjee.
Coinbase currently controls the Crypto ETF Custody Market, serving more than 80% of publishers in this sector.
*This is not investment advice.
