USDTradFi 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.
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