- Citi plans to launch institutional Bitcoin custody infrastructure this year
- The bank will integrate BTC into existing reporting, tax, and custody systems
- Cross-margining and collateral use could expand institutional adoption
Citi is preparing to roll out infrastructure designed to integrate Bitcoin into traditional finance systems. According to Nisha Surendran, who leads digital asset custody development at the bank, the goal is to make Bitcoin “bankable” through regulated custody, institutional key management, and seamless wallet infrastructure.
The initiative builds on more than three years of development work. Citi plans to begin with core custody and safekeeping capabilities, allowing institutions to hold native Bitcoin within a familiar regulatory framework.
Institutional-Grade Custody and Key Management
Under the proposed model, Citi would hold clients’ Bitcoin directly, applying the same custody controls used for equities and bonds. The service will incorporate established risk management protocols, reporting standards, and tax workflows already embedded in traditional asset custody.
This integration allows digital assets to sit alongside conventional holdings within a unified account structure. For institutions hesitant about operational complexity, abstracting away blockchain-specific mechanics like address management and UTXO handling reduces friction.
Bitcoin Inside Existing Financial Rails
Citi plans to route Bitcoin transactions through its existing instruction channels, including Swift messaging and API connections. By embedding crypto into familiar financial plumbing, the bank aims to remove novelty as a barrier to adoption.
The approach reflects growing client demand for digital asset exposure without rebuilding internal systems from scratch. Instead of forcing institutions to adapt to crypto-native infrastructure, Citi is adapting crypto to fit institutional processes.
Beyond Custody: Collateral and Cross-Margining
The bank is also exploring cross-margining capabilities that would allow clients to pledge Bitcoin as collateral within the same custody account that holds government bonds or tokenized money market funds. This could significantly expand the functional role of BTC in institutional portfolios.
Such integration blurs the line between traditional and digital assets. Bitcoin would not merely be held; it could actively support liquidity management and capital efficiency.
A Broader Digital Asset Strategy
Citi’s initiative extends beyond Bitcoin custody. The bank is evaluating stablecoins and blockchain-based deposit tokens to modernize cross-border payments and enable 24/7 settlement capabilities.
The broader message is clear: the next phase of crypto adoption is likely to come from traditional institutions seeking regulated, integrated access. By embedding Bitcoin within established custody frameworks, Citi is positioning itself at the intersection of traditional finance and digital assets.
