Citi to Integrate Bitcoin into Traditional Finance, Launch Custody Services
Citi is preparing to introduce infrastructure that integrates Bitcoin into traditional financial systems, a bank executive said Thursday. The initiative, introduced by Nisha Surendran, head of digital asset custody development at Citi, aims to provide institutional-grade custody, key management, and wallet services for clients holding the cryptocurrency. Speaking at Strategy World, an industry event hosted by Bitcoin treasury firm Strategy, Surendran said the effort is part of Citi’s broader plan to “make Bitcoin bankable.” She outlined a three-pronged approach focused on custody, integration with existing reporting and tax systems, and simplifying client access to digital assets.
“Later this year, Citi will be launching our infrastructure that integrates Bitcoin into traditional finance,” Surendran said. “We’re starting with core custody and safekeeping capabilities, institutional-grade key management, and wallet infrastructure.” The rollout will allow clients to manage Bitcoin positions alongside traditional assets. Citi manages roughly $30 trillion in client assets across securities and money market products. The bank plans to extend the same reporting channels, tax workflows, and compliance frameworks currently used for traditional assets to Bitcoin holdings. Clients will not need to manage wallets, private keys, or one-time addresses, Surendran said, as Citi will handle those processes through its infrastructure.
In December 2025, Citi analysts forecasted that bitcoin could reach $143,000 in 2026, with a bullish scenario above $189,000 and a bearish case near $78,500, citing increased adoption through ETFs and supportive U.S. regulation. At the time, bitcoin traded around $88,000, down 30% from its October peak. Bitcoin is now trading below $67,000.
Morgan Stanley Wants in on the Bitcoin Fun
Yesterday at Strategy World, Morgan Stanley also outlined plans to expand its digital asset offerings, including launching a native crypto custody and exchange platform. The bank will initially allow E-Trade clients to buy and sell spot cryptocurrencies through a partnership, while a fully integrated platform is expected over the next year. The planned custody solution would give clients legal control of their assets under Morgan Stanley’s oversight, though some may continue self-custody, especially for Bitcoin. The firm also said they are exploring crypto yield and lending products, leveraging its $8 trillion asset base to bring off-platform holdings onto its platform.