Can C Capitalize on Digital Asset Growth With New Custody Platform?

Custody+ strengthens Citigroup’s broader digital-asset strategy alongside Citi Token Services, which enables 24/7 transfers of tokenized commercial-bank deposits in select markets. With digital-asset custody capabilities also under development and an initial Bitcoin offering expected later in 2026, C could combine tokenized payments, custody and traditional securities services to deepen institutional relationships and capture more transaction flows.

The opportunity is particularly relevant for the Services segment, which continues to show strong momentum. In the first half of 2026, Services revenues rose 17% year over year. Assets under custody and/or administration increased 22% to about $35 trillion, Securities Services average deposits climbed 15% to $165 billion, and cross-border transaction value in Treasury and Trade Solutions grew 13%. Citigroup’s scale and existing client base provide a solid foundation for further expansion of its digital-asset offerings.

The bank is also modernizing its traditional infrastructure through real-time processing, automation and AI. With more than $2 billion invested annually in its Services platform strategy, digital assets represent an extension of an already large institutional franchise.

While the near-term revenue contribution from digital assets push may remain modest and depend on institutional adoption and regulation, Citigroup’s expanding capabilities across tokenized payments, custody, liquidity and blockchain-based infrastructure could deepen client relationships, capture greater transaction activity, and create revenue opportunities for the company.

Other Firms Push Into Digital Assets

Morgan Stanley’s MS launch of the Morgan Stanley Ethereum Trust and Morgan Stanley Solana Trust marks a meaningful expansion of its digital-asset product strategy. The push into crypto fits with Morgan Stanley’s broader effort to strengthen its wealth and asset management businesses, and reduce its dependence on more cyclical capital-markets activities. 

Likewise, Invesco IVZ has expanded its digital-asset lineup through its partnership with Galaxy, including the Invesco Galaxy Solana ETF. Invesco’s broader digital-asset offering also includes Bitcoin and Ethereum products, reflecting how competition is increasingly moving toward a multi-asset crypto platform rather than individual cryptocurrency funds.

C’s Price Performance, Valuation & Estimates

Shares of Citigroup have jumped 50.9% in the past year compared with the industry’s growth of 29.6%.

Price Performance

Image Source: Zacks Investment Research

From a valuation standpoint, C trades at a forward price-to-earnings (P/E) ratio of 11.19X, below the industry’s average of 14.17X.

Price-to-Earnings F12M

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for C’s 2026 and 2027 earnings implies year-over-year rallies of 40.5% and 15.5%, respectively. Estimates for both years have been revised upward over the past month.

Estimate Revision Trend

Image Source: Zacks Investment Research

Citigroup currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks' Research Chief Names "Stock Most Likely to Double"

Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.

This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research