Citigroup is assessing infrastructure for custody and payments related to stablecoins and crypto-linked ETFs, according to a recent Reuters report.

Biswarup Chatterjee, Global Head of Partnerships and Innovation at Citi’s services division, stated:

 “Providing custody services for the high-quality assets backing stablecoins is our first area of focus.”

This initiative aligns with new U.S. legislation that promotes the use of stablecoins for payments and settlements, provided they are backed by secure assets like treasuries or cash.

As a result, Citi sees an opportunity to act as a custodian for these reserves. The bank is also exploring stablecoin payment networks and instant dollar conversions.

With regulatory conditions improving under U.S. President Trump, Citi joins a growing number of traditional financial institutions entering the stablecoin market.

Looking ahead, the bank is even considering issuing its own stablecoin.