Citigroup and Morgan Stanley continue to demonstrate that cryptocurrencies have come to revolutionize traditional finance. The two banking giants announced new Bitcoin-related products and broader crypto services, targeting institutional custody, trading and tokenized products. Citi plans to add bitcoin to its $30 trillion asset services rails, while Morgan Stanley is building an internal stack and preparing retail access through E*Trade in early 2026.
The measures indicate that large banks are treating digital assets as extensions of service lines rather than experimental projects, a change that is important for traditional investors’ access to the crypto ecosystem and that enhances the tokenization boom.
Citi: Incorporate bitcoin into existing custody and tokenization rails
Citi’s strategy focuses on integrating bitcoin into its existing custody, reporting and tax workflows, effectively allowing clients to manage bitcoin alongside equities and fixed income within the same service model. The bank intends to launch institutional-grade bitcoin trading and custody services sometime in 2026 and use its existing $30 trillion asset services platform to support those flows.
Internally, Citi is already operating a 24/7 blockchain-based network for moving money, called Citi Token Services for cash, which the bank sees as critical for future tokenized instruments. Nisha Surendran, head of digital asset custody at Citi, said while speaking at an event hosted by Michael Saylor’s firm Strategy in Las Vegas that the approach is designed to make bitcoin “bankable” for institutional clientele and to meet client demand for exposure to digital assets within regulated banking frameworks.
In his speech, Surendran said: “The fact that all of these assets are accessible within the same account structure makes it easier to use them for cross-margining,”
Morgan Stanley Approaches Bitcoin and Tokenization
Morgan Stanley is seeking a broader set of client products. The bank plans bitcoin custody, trading, lending and performance products, and is developing in-house technology so clients can hold assets in the bank’s regulated custody rather than relying solely on third parties. Morgan Stanley has also filed for exchange-traded products linked to bitcoin and Solana and is scheduled to introduce direct spot bitcoin trading on its E*Trade retail platform in early 2026.
The bank’s combination of product introductions and technology investment signals a push to offer execution and custody while expanding access to cryptocurrencies to retail through established brokerage channels.
