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BREAKING: Citi targets 2026 launch for crypto custody service as Wall Street dives deeper into digital assets

Citi just made its move.

After two years of quiet development, the banking giant confirmed plans to launch a full crypto custody service by 2026 - marking one of the biggest steps yet by a U.S. megabank into digital assets.

The service will allow Citi to hold native cryptocurrencies like Bitcoin and Ethereum directly for clients.

And it’s not stopping there.

Citi is exploring a hybrid model, combining in-house infrastructure with lightweight third-party solutions to serve asset managers and institutional investors.

The goal: a fully regulated, battle-tested alternative to exchange custody - something traditional investors have demanded since 2021.

But this isn’t just about custody.

Citi is also experimenting with stablecoins and tokenized deposits, joining JPMorgan, Bank of America, and others racing to modernise the financial plumbing of cross-border payments.

Just last week, Citi Ventures invested in stablecoin startup BVNK, underscoring the shift from “crypto speculation” to “crypto infrastructure.”

It all comes amid a political tailwind.

Under President Trump’s pro-crypto administration, the U.S. has rolled out clearer rules - including the GENIUS Act, which carved out guardrails for stablecoins and digital asset custody.

That regulatory clarity has opened the door for Wall Street to enter a space it once avoided.

With ETFs now mainstream, stablecoins maturing, and custody coming from the biggest banks on earth - the line between TradFi and DeFi is starting to blur.

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When fear hit the market this weekend, one man didn’t flinch - Tom Lee.

For anyone new, Tom Lee is the co-founder of Fundstrat and one of Wall Street’s earliest open crypto bulls.

He also leads BitMine (NYSE: BMNR) - an Ethereum-focused treasury company built to accumulate and hold ETH like a digital balance-sheet asset.

So when the largest liquidation in crypto history sent prices crashing, Lee went live on CNBC and calmly said:

He wasn’t just talking the talk.

Over the weekend, BitMine bought the dip - hard.

They snapped up 27,256 ETH, spending $104.2 million while everyone else was panicking. 👀

And it’s already paying off.

Ethereum’s bounced from $3,700 → $4,100+, and BitMine’s conviction looks spot-on.

Tom Lee is a veteran and has seen this movie before - fear, liquidation, then rebound.

Once again, staying calm while others sold turned out to be the right play.

The takeaway?

When the pros are buying the dip, the smart move is usually simple: follow the liquidity, not the emotion. 👀

Despite last week’s chaos - and the biggest liquidation event in crypto history - digital asset funds still saw net inflows of $3.17 billion.

That pushes year-to-date inflows to $48.7 billion, already eclipsing last year’s full-year record.

Let’s break it down.

Bitcoin once again led the charge, pulling in $2.67 billion and pushing its YTD total to a new all-time high of $30.2 billion

Ethereum saw further inflows of $338.3 million.

Solana and XRP continued to show strength with inflows of $93.3m and $61.6m respectively.

From a regional perspective, the U.S. saw the most significant inflows, totalling $3.01 billion.

Switzerland also saw notable inflows of $132 million.

Sweden, Brazil, and Hong Kong, meanwhile, saw modest outflows of $22 million, $10.1 million, and $9.3 million.

CoinShares notes that weekly trading volumes were the largest on record at $53 billion.

That’s double the 2025 weekly average…

Even after Friday’s $20B market meltdown, total assets under management only slipped 7% from last week’s peak to $242.5 billion.

And as CoinShares noted, Friday’s outflows were “only” $159 million.

The weak hands got flushed. The strong hands doubled down.

And if these flows are any sign, conviction didn’t just survive the crash… it grew stronger. 🚀

The Big Bitcoin Short: This guy made $200M timing Trump's tariff post perfectly. The record $19 billion liquidation spree is reviving debate over whether crypto trades tied to policy leaks could ever qualify as insider trading.

US gov shutdown enters 3rd week with ETF ‘floodgates’ ready to burst. The US is entering the third week of its government shutdown as Republicans and Democrats failed to reach an agreement on funding bills, while a flood of ETF applications awaits final approval.

Bitcoin (BTC) Miners BITF, CIFR, IREN, MARA Lead Crypto Stock Rebound on OpenAI Deal. Bitfarms, Cipher Mining and Bitdeer posted double-digit gains on Monday as miners keep benefitting from artificial intelligence's surging demand for computing power.

Crypto market structure bill may need to wait until after the midterm election, says TD Cowen. Senators may be dragging their feet when it comes to passing crypto legislation, said TD Cowen in a note on Monday.

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Trivia Answer: Validator slashing 🥳

Slashing penalizes validators for misbehavior or downtime, discouraging attacks and ensuring reliability. ⚔️

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