Major banks like Citi and JPMorgan are actively exploring blockchain applications and stablecoins, aiming to facilitate 24/7 cross-border money transfers and digital deposit tokens, signaling a shift towards digital finance.

Stablecoins, pegged to fiat currencies and backed by assets, are seen as promising, especially in emerging markets with less developed banking infrastructure, and are increasingly integrated into traditional banking strategies.

Citigroup’s involvement in stablecoins and crypto investments highlights its ambition to bridge traditional finance with the digital economy, leveraging its venture arm, Citi Ventures, to explore innovative crypto solutions.

Analysts forecast Bitcoin could oscillate between $95,000 and $130,000 over the next 3-6 months, driven by ETF inflows and institutional activity, with potential upside from policy and demand, but risks from trade conflicts or exchange failures.

Banks are preparing for regulatory approvals over the next two years, emphasizing security measures, especially safeguarding private keys, as part of their digital asset strategies.

Citi plans to launch a custody service within the next few quarters aimed at asset managers and institutional clients, marking a significant move into institutional-grade digital asset custody.

Bitcoin is seen as capturing new capital flows, with analysts noting that a supportive U.S. regulatory environment could sustain momentum into 2026, bolstering institutional interest.

Regulatory acceptance of crypto custody services has increased following the passage of the GENIUS Act and positive signals from the SEC, encouraging banks to develop secure custody solutions.

JPMorgan announced it will enable clients to trade cryptocurrencies but will rely on third-party custodians, with direct custody not planned in the near term, reflecting a cautious approach.

Despite recent market volatility and trade tensions, institutional flows into Bitcoin remain strong, exemplified by BlackRock’s IBIT experiencing ten consecutive days of inflows.

Citi’s move into digital assets and the broader industry trend indicate a future where digital technologies and regulation foster secure, innovative financial solutions, with 2026 expected to be pivotal.

Analysts forecast Bitcoin reaching targets near $125,000 to $181,000 over the next year, driven by institutional inflows and demand, with stablecoins like Tether gaining market share as 'digital gold'.