Expansion of Crypto unit at Citi (C). For the purpose of strengthening and expanding its footprint in the digital asset field. Citigroup Inc. C has announced a hiring spree for its blockchain and digital assets division. Which will result in the addition of 100 new employees. The move coincides with an increase in demand. From institutional investors for exposure to the cryptocurrencies sector.
Following the publication of an internal document by Citigroup to CoinDesk. The business has announced the appointment of Puneet Singhvi. As its new head of the Institutional Clients Group (“ICG”) section. The appointment is set to take effect on December 1, 2021, and will be effective immediately.
Singhvi will now report to Emily Turner, the ICG’s vice president of business development. Who will oversee all business development activities. A team led by Shobhit Maini and Vasant Viswanathan. Will oversee Global Markets’ blockchain and digital assets operations.
Singhvi previously served as the head of Citigroup’s blockchain. And digital assets division for the Global Markets division of the company.
Citigroup has been considering the possibility of offering digital assets to its customers.
“Before we sell any products or services, we are researching these markets. As well as the growing regulatory landscape and related risks. In order to comply with our own regulatory frameworks. And supervisory expectations,” Turner noted.
Citigroup, which had been contemplating a move into the cryptocurrency space for some time. Became one of the latest global financial institutions to offer digital assets services. To its high-net-worth clients in June 2021. When it announced the formation of a new business unit called the Digital Assets Group.
As a subsidiary of the bank’s wealth management division. It specializes in digital currencies such as cryptocurrencies, non-fungible tokens. Stablecoins, and digital currencies issued by central banks.
The actions should help Citigroup
In addition to strengthening Citigroup’s position in the burgeoning digital market. The measures are likely to assist the bank in diversifying its revenue stream.
Shares of Citigroup have risen by 19.3 percent over the past year. Expansion of Crypto unit compared to the 43.7 percent. Gain experienced by the overall industry during the same period.
Banks were not permitted to keep cryptocurrencies. Until July 2020, according to the Office of the Comptroller of the Currency (OCC). Following a post-July revision, banks were given the green light. To begin investigating bitcoin operations.
As a matter of fact, banks were not very interested in the cryptocurrency and digital asset industry. Only a few years ago. However, following an increase in demand for the developing market. Banks and financial institutions are beginning to accept cryptocurrencies more cautiously.
Earlier this month, JPMorgan Chase JPM became the first large bank in the United States. To allow its financial advisors to provide all of their wealth-management clients. With access to cryptocurrency funds, marking a significant milestone in the industry. The following month, it revealed that JPMorgan was providing its Private Bank wealth management customers. With access to a bitcoin fund that passively managed in-house by the bank. In collaboration with bitcoin powerhouse New York Digital Investment Group. The offering made available to the public.
Onyx, a new business of JPMorgan Chase & Co. that focuses on digital assets, has established. The Wall Street behemoth has even developed its own digital currency, JPM Coin. To compete with other digital currencies.
Goldman Sachs GS, among others, has begun trading in non-deliverable forwards. Which derivatives connected to the price of Bitcoin. That will settled in cash rather than by delivery.