Following Morgan Stanley’s recent advice to clients to allocate 2-4% of their investment portfolios to crypto, another Wall Street banking institution is pivoting to the crypto industry. Citigroup has announced plans to launch digital asset custody services by 2026. JP Morgan and US Bank have already begun offering crypto infrastructure services. Now, it seems entirely possible that more banks will follow suit!
Citi Bank Global Head of Partnerships and Innovation, Biswarup Chatterjee, confirmed the bank’s intentions to enter the crypto space with custody services, which have been in development for two to three years now, according to a CNBC report. This move will enable the bank to hold Bitcoin and Ethereum on behalf of asset managers and other institutional clients.
“We have various kinds of explorations underway, and we’re hoping that in the next few quarters, we can come to market with a credible custody solution that we can offer to our asset managers and other clients,” said Chatterjee.
BREAKING: 🇺🇸 $2.3 Trillion Citibank will launch crypto custody services in 2026. pic.twitter.com/DLF4JpEA8g
— Ash Crypto (@Ashcryptoreal) October 13, 2025
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Is Citi Ready To Launch Own Stablecoin?
Beyond custody service, Citi might be exploring the possibility of launching its own stablecoin. In July 2025, CEO Jane Fraser revealed that the bank’s stablecoin exploration efforts, but insisted on Citi’s focus on the tokenized deposits that offer more immediate practical applications.
Commenting on the bank’s stablecoin vision, Chatterjee said that stablecoins could provide significant utility in regions with underdeveloped financial infrastructure. The bank is also considering custody and payment services for stablecoin issued by third parties.
Citigroup forecasts that total issuance of stablecoins could reach $1.9 trillion in a base case scenario and $4 trillion in an optimistic scenario by 2030.
Meanwhile, McKinsey estimates that approximately $250 billion in stablecoins have been issued to date, primarily for settling cryptocurrency transactions.
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“According to CitiBank, by 2030
Stablecoin issuers will be the largest holders of US Treasuries in the world”– Senator Bill Hagerty
When stablecoin legislation eventually passes, and the floodgates of US dollars are open to everyone around the world,
YOU… pic.twitter.com/bb6ByXhjWK
— Jonnie King 🍌👑 (@JonnieKing) May 19, 2025
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Morgan Stanley Officially Recommends Exposure To Crypto
One of the world’s oldest investment institutions, Morgan Stanley, has advised clients to allocate 2-4% of their investment portfolios to crypto. With a strong spotlight on Bitcoin as a “scarce asset, akin to digital gold,” Morgan Stanley’s suggestion is a pivot in Wall Street’s stance toward digital assets.
On 5 October 2025, Morgan Stanley’s Global Investment Committee (GIC) formally released a set of portfolio allocation guidelines, wherein “opportunistic growth portfolios were suggested up to 4% crypto allocation.” Meanwhile, Bitcoin price (BTC) climbed to a new all-time high overnight, reaching about $125,700 during Sunday’s Asia session before pulling back to the low $123,000 range.
Commenting on the Morgan Stanley’s pivot, Bitwise CEO Hunter Horsley said, “This is huge. New Special Report from Morgan Stanley GIC: “we aim to support our Financial Advisors and clients, who may flexibly allocate to cryptocurrency as part of their multi asset portfolios.” GIC guides 16,000 advisors managing $2 trillion in savings and wealth for clients.”
In Horsley’s opinion crypto is entering into its mainstream era.
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