Multinational banking giant, Citibank has partnered with the Swiss cryptocurrency custody provider, METACO, to develop a digital asset custody service.
In a recent press release, the financial services firm disclosed that the partnership will allow both companies to work together to build a platform that allows clients to securely store and settle digital assets.
As part of the partnership, METACO’s digital solutions and technology, including its digital asset custody and orchestration platform Harmony, will be fully integrated with Citibank’s massive custody network to develop and pilot the crypto custody capabilities.
A Citibank official disclosed in an email that the collaboration is not related to cryptocurrencies per se. Rather, it will concentrate on tokenized securities such as tokenized bonds and equities, which are representations of these assets transferred and settled using the blockchain.
The collaboration between Citibank and METACO enables the bank to expand its current capabilities to digital assets while leveraging its existing technological, operating, and servicing model.
Citibank currently has a staggering $27 million ( approximately £22.1 million) in assets under management, spanning 63 markets. The bank believes that the technological changes that come with the latest partnership will be an "integral" part of its institutional client strategy around digital assets.
Commenting on the partnership, Okan Pekin, global head of securities services at Citi said, "We are witnessing the increasing digitization of traditional investment assets along with new native digital assets. We are innovating and developing new capabilities to support digital asset classes that are becoming increasingly relevant to our clients."
Adrian Treccani, the CEO and founder of METACO CEO further added that its partnership is a "market-defining moment for institutional adoption of digital assets." He said, "We are pleased to team up with Citi, one of the largest securities services firms, to support them in their vision to bridge digital and traditional assets. This initiative is a market-defining moment for institutional adoption of digital assets."
With the crypto industry gaining momentum and disrupting various sectors of the global economy, banks are increasingly establishing crypto services to satisfy the demands of their clients. Last year, Standard Chartered Ventures entered a partnership with a Hong Kong-based crypto company to launch a crypto trading desk for institutional investors.