TradFi Firms Expand Crypto Services: Weekly Roundup

Citi and State Street to Offer Crypto Custody Services After SAB 121 Repeal
Citi and State Street, two major financial institutions with assets of $4 trillion and $6 trillion respectively, are venturing into cryptocurrency custody services in response to the recent repeal of SAB 121 and a regulatory easing under President Trump. Citi, the third-largest U.S. bank, is evaluating the introduction of crypto custody services alongside its CIDAP digital asset platform.
Meanwhile, State Street is set to launch its digital asset custody services in 2026, contingent on regulatory approval. This movement reflects a notable transformation in Wall Street's stance on digital assets, as other significant banks, including BNY Mellon and Goldman Sachs, are also looking into crypto-related services. The actions of these major players indicate a growing acceptance and integration of cryptocurrency within traditional finance, highlighting a pivotal moment in the evolution of digital asset management.
State Street to Launch Digital Asset Custody Business in 2026 Amid Regulatory Changes
State Street, a major Wall Street custodian bank, plans to launch a digital asset custody business in 2026, marking a significant shift as banks have largely avoided direct crypto involvement. This initiative follows the cancellation of the controversial accounting bulletin SAB 121 by the SEC, which imposed stringent liability requirements on companies holding crypto assets, a move opposed by industry participants and lawmakers alike. State Street aims to offer custody and transfer agency services for tokenized assets, including tokenized Treasurys, with a phased client onboarding process starting next year.
However, these plans require approval from the Federal Reserve. The firm has prior experience in the crypto space, having partnered with Lukka in 2028 for digital asset administration and recently enhancing GlobalLink for crypto asset management. Notably, State Street is also the fund administrator for multiple crypto exchange-traded funds, such as the VanEck Bitcoin Trust, showcasing its established presence in the crypto ecosystem.
Fold Holdings Set to Become First Bitcoin Financial Services Firm Listed on Nasdaq
Fold Holdings is poised to become the first Bitcoin financial services company to trade on the Nasdaq, marking a significant milestone in cryptocurrency investment on Wall Street. Following a merger with FTAC Emerald Acquisition Corp., approved by shareholders on February 13, Fold's common stock and warrants will trade under the symbols "FLD" and "FLDDW," starting February 19, subject to final listing approval. Co-founder and CEO Will Reeves emphasized the company's mission to broaden access to Bitcoin investment through innovative financial products. The Nasdaq debut has garnered attention, with Bitcoin advocate Michael Saylor offering congratulations.
Established in 2019, Fold currently holds 1,000 BTC, approximately valued at $94 million based on current market prices, reflecting its substantial commitment to Bitcoin investment opportunities. This development signifies a vital shift in the acceptance of Bitcoin as a mainstream financial asset, potentially attracting more institutional investors.
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