Citigroup to create 100 roles in push into cryptocurrencies for institutional clients

• Citi is focusing on “assessing the needs” of its clients

• BofA, JPMorgan, Goldman all looking at digital currencies and to serve their client base

Citigroup Inc on Tuesday said it is building up a team to add 100 roles as a part of a new push into digital assets, including blockchain and digital currencies, at its institutional division.

The initiative by the U.S. bank is the latest in the list of traditional banks that are trying to tap into the growing cryptocurrency sector, which has been gaining traction through mainstream appeal and regulatory scrutiny.

As part of the effort, Citi, in an internal memo, said Puneet Singhvi to be its Head of Digital Assets inside the Institutional-Clients Group (ICG).

He will report to Emily Turner, who oversees business development for the broader group.

Singhvi, who headed Citi’s blockchain and digital assets for the Global Markets operation, will lead the new team starting December 1, Turner said in the memo sent to the staff.

The new team will comprise a mix of internal and external hires and be housed in Singapore, New York, London, and Tel Aviv, a Citi spokesperson told Reuters in an emailed response.

The hiring is expected to finish by the end of 2022.

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“We believe in the potential of blockchain and digital assets, including the benefits of efficiency, instant processing, fractionalization, programmability, and transparency,” the memo said. “Puneet and team will focus on engaging with key internal and external stakeholders including clients, startups and regulators.”

Singhvi’s team will outline a strategy for how the bank’s institutional business, which includes trading, securities services, investment banking, and its treasury and trade solutions arm, will use blockchain and digital assets.

It will also be involved in product development and project management through developing new products, new clients, and new investments.

Expanding into crypto

“We are focused on assessing the needs of our clients in the digital-asset space,” Citigroup said in an emailed statement sent to media. “Prior to offering any products and services, we are studying these markets, as well as the evolving regulatory landscape and associated risks in order to meet our own regulatory frameworks and supervisory expectations.”

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Citi’s latest hiring push comes as the country’s biggest banks are actively looking for ways to expand into cryptocurrencies.

Earlier this year, Bank of America Corp created a digital currency research team, while JPMorgan Chase & Co and Goldman Sachs Group Inc began offering crypto-futures trading.

JPMorgan also allowed its wealth management clients to access its cryptocurrency funds, even though the bank’s chief Jamie Dimon has been a vocal critic of the sector.

Picture Credit: CryptoGazette