Key Points:
- Major Banks Enter Digital Asset Custody: Citi and State Street announce plans to offer cryptocurrency custodial services.
- Regulatory Clarity Sparks Momentum: The pro-crypto stance of President Donald Trump’s administration fuels Wall Street interest.
- More Financial Giants Eye Crypto: Goldman Sachs and E-Trade consider digital asset services amid shifting regulations.
Wall Street Embraces Crypto Custody
Two of the largest U.S. banks, Citi and State Street, are making a bold move into the digital asset space. Both financial giants have announced plans to offer crypto custodial services, marking a significant step toward mainstream institutional adoption of digital assets.
This comes amid growing regulatory clarity under President Donald Trump, whose administration has championed a more crypto-friendly stance. Wall Street firms, once hesitant, are now seizing the opportunity to integrate digital assets into their operations.
Citi’s CIDAP and State Street’s Crypto Roadmap
Citi has unveiled its CIDAP digital asset platform, designed to provide crypto-safeguarding technology for institutional clients. The bank has also explored tokenizing private markets, signaling broader ambitions in blockchain-based financial solutions.
Also read: Ethereum Set for Massive Surge: Could the Pectra Upgrade Push ETH to $10K?
State Street, a major custodian bank, is preparing to launch its own crypto custody services by 2026, further cementing the industry’s shift toward digital asset integration.
Wall Street’s Crypto Awakening
The shift towards crypto among traditional financial institutions has gained traction, especially with backing from industry leaders like Coinbase. Previously, banks faced regulatory hurdles, but under the current administration, the landscape is changing.
Federal Reserve Chair Jerome Powell acknowledged the need for banks to serve crypto clients, provided they adhere to risk disclosure practices. He also committed to ending excessive enforcement actions that had restricted crypto-friendly banking, sometimes referred to as “Operation Choke Point 2.0.”
As regulatory barriers ease, more financial institutions are stepping into the crypto space. Goldman Sachs has expressed interest in digital asset operations if permitted by regulators, while Morgan Stanley-backed E-Trade is also exploring crypto services.
With major banks now actively engaging in crypto custody, the institutional adoption of digital assets is accelerating—potentially reshaping the future of finance.
