Citi and JPMorgan Step Up Digital Asset Plans

Wall Street's biggest banks are deepening their involvement in digital assets, underscoring a strategic shift toward regulated blockchain adoption. Citi and JPMorgan are both advancing their crypto initiatives as the U.S. regulatory outlook becomes clearer.

Citi told CNBC that it aims to launch a digital asset custody platform by 2026, positioning itself to offer secure storage and management of cryptocurrencies for institutional clients. The move comes after several years of internal development, as the bank refines its infrastructure for blockchain-based services.

Biswarup Chatterjee, Citi's Global Head of Partnerships and Innovation in the Services division, said the project has reached a pivotal stage. "We have various kinds of explorations," he explained, adding that the team hopes to deliver "a credible custody solution" for asset managers and other clients within the next few quarters.

Chatterjee said Citi is pursuing a "dual-track approach," combining proprietary and third-party technology depending on the nature of the digital assets. "We may have certain solutions that are completely designed and built in-house," he noted, "whereas we may use a lightweight, nimble solution for other kinds of assets." He also confirmed that Citi is still in the "early stages" of stablecoin exploration, suggesting that multiple use cases remain under review.

At JPMorgan, the push is also accelerating. Scott Lucas, the bank's Global Head of Markets Digital Assets, said the firm is exploring stablecoin and tokenized payment solutions as part of a broader strategy to integrate blockchain into its cash management and transaction services. "There's a real opportunity for us to think about how we can offer different services for our clients," Lucas told CNBC.

He added that the regulatory landscape, which only recently began to solidify in the U.S., is shaping the bank's strategy. "That strategy is still emerging," Lucas said, "because it's only really been a few months since we've had some more clear regulation around what the opportunity looks like."

Both banks' initiatives reflect growing institutional acceptance of digital assets, no longer seen as a fringe experiment but as an evolving component of the financial system. With regulatory barriers easing, Citi and JPMorgan are positioning themselves to serve institutional demand while maintaining compliance in an area that remains complex and fast-moving.