Wall Street Giants State Street And Citi Enter Crypto Custody Race

The two largest custodian banks in the world, State Street and Citi, have announced their entry into the crypto custody market. With assets under custody of $46.6 trillion and $25 trillion respectively, these banks are poised to make a significant impact on the crypto custody market.

This move was made possible after the repeal of SAB 121, a 2022 SEC rule that had previously prevented banks from providing crypto custody services. The repeal of this rule has opened up opportunities for traditional banks to enter the crypto market and offer secure and reliable digital asset custody solutions.

State Street entered the crypto space in 2024 through a strategic partnership with Switzerland’s Taurus, positioning itself as a leader in digital asset custody. Citi has also been exploring blockchain-based initiatives and digital asset custody solutions through collaborations with various companies in the industry.

Overall, this regulatory shift has come at a time of increasing institutional demand for secure crypto custody solutions, making it a game-changer for traditional banks looking to enter the crypto market. The entry of State Street and Citi into the crypto custody race highlights the growing importance of digital assets in the financial industry.