Citigroup's Crypto Investment: Millions In Blockchain Bets

Citigroup Inc. is making moves in the cryptocurrency sector. In 2022, its venture capital investing group, Citi Ventures, made its first digital asset seed investment in a Hong Kong-based digital-asset management firm, Xalts. The company also announced in 2021 that it would be creating 100 roles focused on digital assets, including blockchain and digital currencies, at its institutional division. This initiative follows similar moves by traditional banks such as Bank of America, Goldman Sachs, and JPMorgan Chase & Co to tap into the growing cryptocurrency sector.

Citigroup's venture capital group, Citi Ventures, made its first crypto seed investment in 2022

Citigroup Inc. is an American multinational investment bank and financial services company based in New York City. In 2022, its venture capital group, Citi Ventures, made its first-ever crypto seed investment in the Hong Kong-based digital asset management firm, Xalts.

Citi Ventures co-led a $6 million initial capital financing round for Xalts, which was founded by a former HSBC Holdings trader and a former Meta Platforms executive. Accel, a Palo Alto-based venture capital firm, was the other co-leader of the funding round. Polygon co-founder Sandeep Nailwal and other hedge fund managers also contributed to the funding.

The investment in Xalts is part of Citigroup's growing interest in the cryptocurrency sector. In 2021, the company established a crypto-centred unit within its wealth management division. Citigroup has also been expanding its digital assets team, with plans to create 100 roles focused on blockchain and digital currencies.

Citigroup's move into the cryptocurrency space reflects a broader trend among traditional banks to explore opportunities in this growing sector, which has been gaining mainstream appeal and regulatory scrutiny.

Citigroup is creating 100 roles focused on digital assets, including blockchain and cryptocurrencies

The new team will be responsible for product development, project management, and outlining strategies to pursue digital asset opportunities, including new products, clients, and investments. Citigroup's decision to expand its digital asset team follows similar moves by other traditional banks, such as Bank of America, Goldman Sachs, and JPMorgan Chase, who have also started offering cryptocurrency-related services to their clients.

Citigroup's digital asset team will focus on assessing the needs of their clients in the digital asset space. Before offering any products and services, the team will study the market, the evolving regulatory landscape, and associated risks to ensure compliance with their regulatory frameworks and supervisory expectations. This cautious approach demonstrates Citigroup's commitment to navigating the complex and evolving nature of the cryptocurrency sector.

The formation of the digital asset team is a significant step for Citigroup as it ventures into the world of blockchain and cryptocurrencies. By leveraging the expertise of both internal and external talent, Citigroup aims to stay competitive in the rapidly evolving financial landscape. This expansion highlights the increasing importance of digital assets and cryptocurrencies in the global financial market.

Citigroup's move towards digital assets and cryptocurrencies is a recognition of the potential benefits of these new technologies, including efficiency, instant processing, fractionalization, programmability, and transparency. The bank's decision to create 100 new roles focused on this sector underscores the growing mainstream appeal and regulatory scrutiny of cryptocurrencies. As the industry continues to evolve, Citigroup is positioning itself to be a key player in the digital asset space.

Citigroup's digital assets group is launching a startup, led by former co-heads Greg Girasole and Alex Kriete

Citigroup is an American multinational investment bank and financial services company. In June 2021, the company launched a new business unit dedicated to cryptocurrency and blockchain technology, called the 'Digital Assets Group'. The initiative was part of Citigroup's wealth management division and was led by co-heads Greg Girasole and Alex Kriete.

Girasole and Kriete were responsible for developing products and working closely with Citi's functional partners and the broader Capital Markets and Citi Investment Management team. In November 2021, the company announced plans to expand its digital asset team by hiring 100 new employees. Puneet Singhvi was appointed as the new head of the division, with a focus on developing a strategy to facilitate various internal operations, such as trading, investment banking, and securities services, to work with digital assets and blockchain technology.

In March 2022, Girasole and Kriete announced that they would be leaving Citigroup to start their own venture in the digital asset space. Girasole had been with the company for seven years, holding positions as a senior vice president and president portfolio manager in Manhattan and Stanford, Connecticut. Kriete had been with Citigroup for 11 years and held senior vice president and vice president roles in investments at Citi Private Bank.

In their LinkedIn posts, both Girasole and Kriete expressed their passion for digital assets and their belief in the importance of this sector for the future of global capital markets. They stated that they looked forward to assisting in the maturation of the market and creating new business models.

Citigroup is one of several major banks investing in cryptocurrency, including Wells Fargo and BNY Mellon

In November 2021, Citigroup announced it was creating 100 roles focused on digital assets, including blockchain and digital currencies, within its institutional division. The team, led by Puneet Singhvi, Citi's head of blockchain and digital assets, will be based in Singapore, New York, London, and Tel Aviv. This move reflects the bank's intention to tap into the growing cryptocurrency sector, which has been gaining mainstream appeal and regulatory scrutiny. Citigroup's new team will be involved in product development and project management while outlining a strategy to pursue digital asset opportunities, including new products, clients, and investments.

Wells Fargo, another prominent American banking institution, has also ventured into the cryptocurrency space. In May 2024, the bank disclosed investments in various Bitcoin exchange-traded funds (ETFs), providing exposure to cryptocurrencies. Wells Fargo's holdings in Grayscale's GBTC spot Bitcoin ETF amounted to $141,817, and it also invested less than $1,200 in the ProShares Bitcoin Strategy ETF (BITO). The bank has also invested $99 in Bitcoin Depot Inc., a Bitcoin ATM provider. While Wells Fargo's investments in these crypto-related vehicles are relatively small, they signal a growing interest in digital assets among financial institutions.

BNY Mellon, the world's largest custodian bank, has also embraced the cryptocurrency trend. In October 2022, BNY Mellon launched its Digital Asset Custody platform in the US, allowing select clients to hold and transfer Bitcoin and Ether. This move aligns with the bank's commitment to supporting client demand for both traditional and digital asset servicing. BNY Mellon's Digital Assets Unit, formed in 2021, aims to develop solutions for digital asset technology and plans to launch the industry's first multi-asset platform that bridges digital and traditional asset custody. With its scale and expertise, BNY Mellon is well-positioned to drive innovation in financial markets through blockchain technology and digital assets.

Citigroup's institutional division is hiring for its new team in Singapore, New York, London, and Tel Aviv

Citigroup is hiring 100 people to focus on digital assets, including blockchain and digital currencies, at its institutional division. The new team will be based in Singapore, New York, London, and Tel Aviv. The initiative is part of the company's efforts to tap into the growing cryptocurrency sector, which has been gaining mainstream appeal and regulatory scrutiny. Puneet Singhvi, Citi's head of blockchain and digital assets at its global markets operation, will lead the new team. The team will consist of a mix of internal and external hires and will be involved in product development and project management while outlining a strategy to pursue digital asset opportunities, including new products, clients, and investments.

Citigroup is a leading global bank and one of the "Big Four" banking institutions in the United States. The company operates through two major divisions: the Institutional Clients Group (ICG) and Personal Banking and Wealth Management (PBWM). The ICG division offers investment banking, corporate banking, treasury and trade solutions, and securities services. Citigroup has been expanding its presence in the digital asset space and is committed to building a diverse and inclusive community of employees. The company has a presence in hundreds of countries and cities worldwide and serves over 200 million customers.

Frequently asked questions