Citigroup returns to cryptocurrency space

Apifiny

特邀专栏作者

2021-05-13 14:47 (UTC+8)

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Cryptocurrencies are fast becoming mainstream.

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Cryptocurrencies are fast becoming mainstream.

Article Source:Blockworks

By Casey Wagner

Now, two years after canceling its "CitiCoin" cryptocurrency experiment, Citigroup may be returning to the digital asset space.

According to the Financial Times, Citibank is considering offering services such as cryptocurrency trading, custody and financing to clients.

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CitiCoin's Second Journey

In 2015, Citigroup established the Citicoin project to test a token that connects global payments. The project is run by the Citi Innovation Lab in Dublin, but Citibank has not formally announced the project publicly.

Gulru Atak, head of Citibank’s Innovation Lab, revealed in 2019 that Citibank had abandoned plans to launch CitiCoin, saying the company would focus on improving existing infrastructure. Atak emphasized that despite abandoning CitiCoin, Citibank will continue to explore broader blockchain technology and applications.

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Restart cryptocurrency

Now, with Bitcoin ushering in its second explosive growth, traditional banks realize they are in a similar situation. Some of the biggest names in finance, including Goldman Sachs, BNY Mellon and JP Morgan, have recently expressed plans to expand into digital asset investment tools and services.

“Citigroup recognizes that their clients want to own and trade cryptocurrencies through a reputable and trusted brand,” said Harold Montgomery, Managing Director of Wirex USA. Developing products for their customers. This shows that cryptocurrencies are rapidly becoming mainstream."

Citibank is not the only bank revisiting past cryptocurrency-related plans. Goldman Sachs announced earlier this year that it would restart the cryptocurrency trading platform after abandoning the short-lived project in 2018.

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Bitcoin FOMO Sentiment

Over the past 12 months, Bitcoin has rallied more than 480%, and its returns have investors and institutions feeling a familiar FOMO sentiment again. However, the industry has changed over the past two years, with or without the help of traditional institutions, and banks have had to adapt.

"Citigroup is likely to cooperate with mature companies in the cryptocurrency field to deal with the trading and custody challenges they will face." Apifiny CEO Haohan said: "In addition, they also need to find new cryptocurrency products that provide customers with investment Advantages of banking peer competition."