Citigroup considers crypto amid surge in customer demand on Wall Street

Trading, financing and custody services are being pursued by the investment bank.

Citigroup is reportedly considering offering crypto-related services to its customers in response to rising demand, specifically from asset managers and hedge funds.

The financial services firm’s global head of foreign exchange, Itay Tuchman, told the Financial Times on Friday that the investment bank was already exploring the possibility of providing crypto services to its clients.

Trading, financing and custody services are being discussed, but Tuchman said the firm would not be rushed into launching something that would worry regulators.

“We shouldn’t do anything that’s not safe and sound. We will jump in when we are confident that we can build something that benefits clients and that regulators can support,” he said.

Tuchman said the bank witnessed an increase in the number of clients inquiring about Bitcoin (BTC) starting in August 2020. At the time the coin price had just climbed 33% in the space of a month, from $9,000 to $12,000, and the global cryptocurrency market capitalization was around one-tenth of what it is now.

But Citigroup is apparently in no hurry to jump on the bandwagon even with Bitcoin currently perched at $55,000. Tuchman said the firm wouldn’t fall victim to its own fear of missing out, and would instead play the long game with cryptocurrency, which the bank believes will still be around for a while yet.

“I don’t have any FOMO [fear of missing out] because I believe that crypto is here to stay and that we are just at the very beginning of the market. This isn’t a space race. There is room for more than just one flag,” said Tuchman.