Citigroup said to review crypto custody partnership with Metaco

Citigroup ( NYSE: C ) is assessing its pact with cryptocurrency custodian Metaco and has started talks with several other providers, Bloomberg reported Friday, citing people with knowledge of the matter. The news comes after Ripple Labs, the company behind the XRP ( XRP-USD ) token, last month acquired Swiss startup Metaco for $250M to enable clients to tokenize, settle and custody any asset. A number of traditional financial firms have ended partnerships with crypto custody firms, after the fallout from high-profile bankruptcies and increased regulatory scrutiny. In fact, banks around the world have reduced their crypto assets under custody by 66% last year. Citi ( C ), in an effort to expand into blockchain-powered products like tokenized securities, was said to have picked Metaco as its custody partner in June 2022. More on traditional finance pushing into decentralized finance: EDX Markets launches digital asset market; closes new financing round Bank of New York Mellon plans crypto custody platform launch - report Deutsche Bank's DWS reportedly shopping for crypto investments Crypto Pseudo-Banks Have A Way To Go