Citigroup has taken another step into the world of cryptocurrency, as the Wall Street giant will assist its wealthiest clients in engaging with cryptocurrencies as part of a new digital assets group within its thriving wealth management unit, according to a memo to employees obtained by Bloomberg News. Alex Kreiti and Greg Gerasoul will lead this new effort. According to Ian Armitage, head of global capital markets at Citigroup in private banking, and Rob Yasminski, head of the bank's global investment management arm, Kreiti and Gerasoul "will be responsible for developing our future product capabilities, client delivery mechanisms, and thought leadership across all digital assets." Each will also serve as a liaison with "all other business groups at Citi that are also expanding in this rapidly emerging field."
**Cautious Steps**
Citigroup is forming the unit as demand from investors for digital assets continues to rise, despite the extreme volatility in the prices of major cryptocurrencies. This move follows similar efforts by competitors such as Goldman Sachs and Morgan Stanley, which have recently invested in blockchain technologies and related companies.
Citigroup has been building its wealth management unit since establishing it earlier this year, appointing long-time executive Jim O'Donnell to lead these efforts. Recently, the bank has focused on creating a series of wealth management centers across Europe and Asia, attempting to divest from certain retail banking operations in both regions.
According to Citigroup's cryptocurrency plan, the new group will assist clients in investing in stablecoins, non-fungible tokens (NFTs), as well as central bank digital currencies, as noted in the memo. The newly formed unit comes just weeks after Congress questioned top executives from the six largest U.S. banks about their relationships with cryptocurrencies. Jane Fraser, Citigroup's CEO at the time, stated that her bank is taking cautious steps in this area, adding: "We are proceeding very carefully here."
