Two of Wall Street's largest banks are charting different courses in digital assets.
Citi plans to launch a crypto custody service by 2026, while JPMorgan Chase says that custody is "not on the table."
Citi moves forward
Biswarup Chatterjee, Citi's global head of partnerships and innovation in its services division, told CNBC on Oct. 13 that the bank has been building custody infrastructure for the past two to three years and expects to roll it out soon.
"We have various kinds of explorations ... 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," Chatterjee said.
Related: Coinbase would be 'ecstatic' to see more custodians in the crypto ETF space
JPMorgan says not yet
Speaking on CNBC's Squawk Box Europe on Oct. 13, Scott Lucas, JPMorgan's global head of markets digital assets, said the bank intends to engage in crypto trading but will not hold client crypto directly.
"For JPMorgan, I don't think that's in the near-term horizon for us," Lucas said when asked about crypto custody. "Jamie [Dimon] was pretty clear on the investor day that we're going to be involved in the trading and custody is not on the table at the moment."
Lucas added that questions around "risk appetite and regulatory exposure" continue to shape the bank's approach to digital assets.
Lucas said the bank is "exploring" stablecoins and deposit tokens to meet institutional demand. He added that the firm's strategy "is still emerging," citing recent regulatory developments that define what is possible for banks.
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What is Crypto Custody?
Crypto custody refers to the secure storage of private keys that grant access to digital assets, such as Bitcoin (BTC) and Ether (ETH). It is similar to banks storing securities or cash for clients, but with added technical and security complexities.
Custodians are responsible for protecting digital assets against loss, theft, or unauthorized access, which makes the role both crucial and high-risk for institutions.
Related: JPMorgan analyst praises $60 billion growth of this crypto asset class
The GENIUS Act Effect
On Aug. 27, the United States House of Representatives passed the Guiding and Establishing National Innovations of U.S. Stablecoins (GENIUS) Act. It established a f ederal regulatory framework that would allow major U.S. financial institutions to enter the digital assets arena.
Under the law, stablecoin issuers must maintain full reserve backing, adhere to strict transparency and auditing requirements, and operate under oversight.
The legislation reduces regulatory and legal uncertainties, allowing traditional banks to be more comfortable engaging in stablecoin issuance, trading, or support services. According to Treasury Secretary Scott Bessent, the GENIUS Act is expected to accelerate crypto adoption and grow the current market to $2 trillion.
This story was originally reported by TheStreet on Oct 13, 2025, where it first appeared in the Banking section. Add TheStreet as a Preferred Source by clicking here.
