On February 27, global financial giant Citigroup announced plans to launch an institutional Bitcoin custody solution in 2026, integrating digital assets into its core banking infrastructure. The initiative was disclosed by Nisha Surendran, Head of Digital Asset Custody, signaling a significant step toward mainstream financial adoption of crypto assets.
The upcoming platform will offer institutional-grade custody, key management, and wallet infrastructure with 24/7 operational capability. It will integrate with existing banking systems via Swift messaging and API connectivity. Citi also intends to extend tax reporting, compliance management, and risk control processes to Bitcoin holdings, enabling institutional investors to manage digital assets similarly to equities or bonds.
With approximately $30 trillion in assets under management, Citi’s entry into Bitcoin custody is widely viewed as a catalyst for increased institutional capital allocation to digital assets. However, regulatory evolution and cybersecurity risks remain central challenges.
Institutional custody requires more than secure key storage. It demands robust AML procedures, source-of-funds verification, and continuous on-chain transaction monitoring. Given Bitcoin’s transparent yet complex transaction structure, funds can move across multiple addresses, pass through mixing services, or interact with high-risk entities.
This is where KYT (Know Your Transaction) monitoring becomes essential. Advanced solutions such as Trustformer KYT provide real-time address risk screening, transaction flow visualization, and automated risk scoring. By integrating custody services with continuous blockchain analytics, financial institutions can build a comprehensive compliance framework aligned with global regulatory standards.
Citigroup’s move reflects the accelerating convergence between traditional finance and digital assets. In this evolving landscape, institutions that combine secure custody infrastructure with advanced KYT monitoring—such as Trustformer KYT—will be better positioned to ensure regulatory readiness, operational security, and long-term market trust.