Citi to integrate Bitcoin into traditional finance via bank-grade custody

Citi is preparing to roll out infrastructure aimed at integrating Bitcoin into traditional finance, according to Nisha Surendran, who leads the bank’s digital asset custody development.

Speaking at Strategy World, an event hosted this week by Bitcoin treasury firm Strategy, Surendran said the initiative is part of Citi’s effort to “make Bitcoin bankable” through custody, key management, and integration into existing financial systems.

Citi has expanded its infrastructure from more than 220 global payment networks into blockchain connectivity, moving from private to public chains as client demand increases.

The New York-based banking giant has been quietly developing the infrastructure for over three years, Biswarup Chatterjee, global head of partnerships and innovation in Citi’s services business, told CNBC last October.

Under the proposed model, Citi would hold clients’ native crypto assets, leveraging its regulatory framework and long history in traditional custody. The bank is assessing both proprietary technology and partnerships to deliver the service.

The custody offering will incorporate the same risk controls and reporting frameworks that govern conventional securities held by the bank’s clients. Bitcoin positions will feed into existing tax workflows and reporting channels, allowing institutions to treat digital holdings alongside equities and bonds within a unified account structure, Surendran noted.

She emphasized that the service could lower operational friction for institutions, strengthen financial safeguards through custody segregation, and enable the broader use of crypto assets alongside traditional holdings.

The lender will route Bitcoin transactions through its existing instruction channels, including Swift messaging and API connections, abstracting away complexities such as unspent transaction outputs and address management.

Beyond custody, Citi is exploring stablecoins and blockchain-based deposit tokens as part of a wider effort to modernize cross-border payments and 24/7 money movement.

Surendran highlighted the potential for cross-margining between digital and conventional holdings, enabling clients to pledge Bitcoin as collateral within the same master custody account that holds government bonds or tokenized money market funds on Ethereum.