Citi Sees ‘Very Rapid’ Accumulation of Interest in Bitcoin — Contemplates Launching Crypto Services

Citigroup is reportedly seeing a “very rapid” accumulation of interest in bitcoin across a broad spectrum of clients, including large asset managers. The bank is now considering launching its own crypto services as a growing number of banks are offering bitcoin-related services to their clients, including Goldman Sachs and Morgan Stanley.

• Citigroup is reported considering launching cryptocurrency services after seeing a surge in interest from clients, the Financial Times reported Friday.

• While no decision has been made regarding its crypto services, the publication reported that “trading, custody, and financing are all under consideration,” citing Itay Tuchman, the bank’s global head of foreign exchange.

• The Citigroup executive told the publication that Citi has seen a “very rapid” accumulation of interest in bitcoin across a broad spectrum of clients, including large asset managers.
• The news of Citigroup considering launching crypto services came as a growing number of major banks hop on board the cryptocurrency train. Investment bank Goldman Sachs has launched bitcoin derivatives trading and has brought back its bitcoin trading desk with the aim to offer “full spectrum” of bitcoin investments. Furthermore, Morgan Stanley is already offering wealthy clients access to bitcoin funds and JPMorgan is reportedly planning to offer a crypto service.
• Meanwhile, hundreds of smaller banks are reportedly planning to offer their clients the buying, selling, and holding of cryptocurrencies through existing bank accounts.

• Some Citi analysts have been bullish about bitcoin. In March, Citi said that bitcoin is at a tipping point and could become the preferred currency for international trade. In November last year, Citi forecasted that bitcoin will trade at $318K by the end of this year.