Citigroup Returns to Cryptocurrencies as Crypto FOMO Sentiment Runs High

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

Citigroup Returns to Cryptocurrencies as Crypto FOMO Sentiment Runs High

Source: Apifiny

Original Title: “Citigroup Returns to Cryptocurrency

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

According to the Financial Times, Citigroup is considering offering cryptocurrency trading, custody and financing services to its customers.

Apifiny CEO Haohan said, “With the more recent strong customer demand for cryptocurrencies, on the back of which institutions are starting to invest heavily in bitcoin, it is not surprising that Citigroup is interested in cryptocurrency-related services.”

CitiCoin’s Second Journey
In 2015, Citigroup had set up the Citicoin project to test a token that would connect global payments. The project was being experimented with by the Citi Innovation Lab in Dublin, but Citi did not officially announce the project publicly.

Gulru Atak, head of Citi’s Innovation Lab, revealed in 2019 that Citi had abandoned plans to launch Citicoin and said the company would work to improve its existing infrastructure.Atak stressed that while Citicoin was abandoned, Citi would continue to explore a broader range of blockchain technologies and applications.

Just as CitiCoin was abandoning the project, financial institutions around the world were scrambling to join the cryptocurrency space as the price and popularity of bitcoin continued to rise. According to a report by Greenwich Associates, the financial services industry spent $1.7 billion annually on blockchain in 2018, with a 67 percent increase in budgets spent on blockchain compared to the previous year.

Rebooting cryptocurrencies
Now, with Bitcoin seeing its second explosive growth, traditional banks are realizing they are in a similar situation. Some of the biggest names in finance, such as Goldman Sachs, BNY Mellon and JP Morgan, have recently said they plan to expand into digital asset investment tools and services.

“Citigroup recognizes that their customers want to own and trade cryptocurrencies through reputable and trusted brands.” Harold Montgomery, Managing Director of Wirex USA, said, “Citigroup joins other mainstream financial institutions such as Goldman Sachs and JPMorgan Chase in developing products for their clients. This shows that cryptocurrencies are rapidly becoming mainstream.”

Citi isn’t the only bank revisiting past cryptocurrency-related initiatives. Goldman Sachs announced earlier this year that it would relaunch its cryptocurrency trading platform after abandoning the short-lived project in 2018.

Goldman first launched its cryptocurrency services platform in 2018, just as Bitcoin’s first big rally was coming to an end. As the price of the largest digital currency began to fall, interest from investors and institutions began to decline.

Bitcoin FOMO Sentiment
Over the past 12 months, Bitcoin has risen over 480% and its returns have given investors and institutions a familiar FOMO sentiment once 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 to those changes.

“Citigroup is likely to partner with established companies in the cryptocurrency space to address the trading and custody challenges they will face.” Apifiny CEO Haohan said, “In addition, they will need to find new cryptocurrency products that offer clients an advantage over their investment banking counterparts.”

Posted by:CoinYuppie,Reprinted with attribution to:
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