Citi to Link Bitcoin to Traditional Finance, Launch Custody

Citi is preparing to launch infrastructure that links Bitcoin to traditional finance through institutional-grade custody, key management, and wallet services, a senior executive confirmed on Thursday. Nisha Surendran, head of digital asset custody development at the bank, outlined the initiative at Strategy World, a conference hosted by Bitcoin treasury company Strategy, as part of Citi's effort to make Bitcoin bankable.

How Will Citi Integrate Bitcoin Into Its Banking Systems?

Citi's plan follows a three-pronged strategy: core custody and safekeeping, integration with existing compliance and tax frameworks, and simplified client access to digital assets, according to Surendran. Clients will be able to manage Bitcoin positions alongside traditional holdings without handling wallets, private keys, or one-time addresses directly, as Citi will manage those processes through its own infrastructure.

"Later this year, Citi will be launching our infrastructure that integrates Bitcoin into traditional finance," Surendran said at the event. "We're starting with core custody and safekeeping capabilities, institutional-grade key management, and wallet infrastructure."

Citi currently administers approximately $30 trillion in client assets across securities and money market products. The bank plans to extend the same reporting channels, tax workflows, and compliance systems used for conventional assets to Bitcoin holdings.

Later this year, Citi will be launching our infrastructure that integrates Bitcoin into traditional finance. We're starting with core custody and safekeeping capabilities, institutional-grade key management, and wallet infrastructure.

— Nisha Surendran, Head of Digital Asset Custody Development at Citi

Bitcoin Price Context and Citi Forecasts

The custody push comes while Bitcoin trades well below recent highs. In December 2025, Citi analysts projected the cryptocurrency could reach $143,000 during 2026, with a bullish scenario above $189,000 and a bearish case near $78,500, citing ETF adoption and supportive U.S. regulation. Bitcoin was around $88,000 at the time, down 30% from its October peak. It now trades below $67,000, having rallied sharply on Wednesday before giving back some gains.

Morgan Stanley Unveils Parallel Crypto Plans

Citi was not alone in making digital asset announcements at Strategy World. Morgan Stanley also detailed plans to build a native crypto custody and exchange platform at the same event. The bank will initially let E-Trade clients buy and sell spot cryptocurrencies through a partnership, with a fully integrated platform expected within the next 12 months.

Morgan Stanley's custody solution would give clients legal control of their assets under the firm's oversight, though some may opt for self-custody, especially for Bitcoin. The bank, which manages roughly $8 trillion in assets, said it is also exploring crypto yield and lending products aimed at bringing off-platform digital holdings onto its centralized infrastructure.