Citigroup considers cryptocurrency services amid surge in demand from Wall Street clients

Citigroup is reportedly considering offering cryptocurrency-related services to its clients in response to growing demand, particularly from asset managers and hedge funds.

Itay Tuchman, global head of foreign exchange at the financial services firm, told the Financial Times on Friday that the investment bank is already exploring the possibility of offering cryptocurrency services to its clients.

Trading, financing and custody services are all under consideration, but Tuchman said Florence would not rush into launching services that would worry regulators.

“We shouldn’t do anything that’s unsafe and unhealthy,” he said. “When we are confident that we can build products that are beneficial to customers and that regulators can support, we will enter (the cryptocurrency market).”

Tuchman said that starting in August 2020, Huaqi saw an increase in the number of customers asking about Bitcoin. At that time, the price of Bitcoin had just risen 33% in a month, from $9,000 to $12,000, and the global cryptocurrency market value was about one-tenth of what it is now.

But Citi is clearly in no rush to join the trend, even with Bitcoin currently trading at a high of $55,000. Tuchman said that Citi will not fall victim to fear of missing out, but will play a long game with cryptocurrencies, which it believes will still exist for some time.

“I don’t have FOMO [fear of missing out] at all because I believe crypto is here to stay and we’re just at the very beginning of the market. This is not a space race. There’s not just one flag here,” Tuchman said.