Citi is building new infrastructure that will enable Bitcoin to be used in the regular financial system. The initiative will make it simpler for institutional clients to own and handle the cryptocurrency.
Speaking at the Strategy World conference, Nisha Surendran, the head of digital asset custody development at Citi, said the bank aims to provide secure custody, sophisticated key management, and wallet solutions specifically designed for institutional investors.
The bank is making Bitcoin “bankable” by filling the gap between the crypto world and mainstream finance.
The plan involves three areas: secure storage of assets, integration with current reporting and tax systems, and easier access for clients to digital assets. The first phase, which involves custody and secure storage infrastructure, is set to be rolled out later this year.
Citi plans new infrastructure to bridge Bitcoin with traditional finance
Citi says that it will soon introduce new infrastructure with the aim of bringing Bitcoin closer to the traditional financial system.
The bank will begin by providing safe custody and storage solutions, as well as sophisticated key management and wallet solutions designed for institutional clients.
Once the infrastructure is in place, investors will be able to track their Bitcoin investments together with stocks, bonds, and other traditional assets using the same systems they currently use.
With approximately $30 trillion in client assets, Citi’s initiative may make it easier for institutional investors to access and track their Bitcoin investments using familiar financial systems.
The bank also seeks to apply its current reporting, tax, and compliance solutions to Bitcoin, making it easier for clients to track and control their Bitcoin investments.
Banks expand into crypto as demand rises
As more and more people show interest in digital assets and as the regulations become clearer, many financial institutions are entering the crypto market.
The big banks are no longer on the sidelines but are now offering services that enable customers to safely buy, store, and manage cryptocurrencies through their usual banking systems.
The banks are rapidly entering the crypto market with custody services. These services provide institutional investors with a safe and regulated way to store assets such as Bitcoin. However, many people are also exploring the use of stablecoins, blockchain payments, and tokenized assets to facilitate faster and easier transactions, particularly across international borders.
Cryptocurrency is not replacing traditional finance; rather, it is slowly being incorporated into existing financial institutions. This trend indicates how banks are adapting to the changing market conditions and preparing for a bigger role in the future of digital finance.