US banking giant Citigroup is currently awaiting approval to trade Bitcoin futures on the Chicago Mercantile Exchange, CoinDesk reported today.
An anonymous source within the bank told CoinDesk that Citigroup is currently grappling with a recent surge in demand for bitcoin engagement from its customers. If approved, Citi would join the ranks of Goldman Sachs and become the second major bank to offer Bitcoin futures trading.
A Citigroup spokesperson wrote to CoinDesk by email: “Our customers are increasingly interested in this area and we are monitoring these developments. In view of the many questions about regulatory frameworks, supervisory expectations and other factors, we are very careful with our approach. “
“We are currently considering products such as futures for some of our institutional clients as they operate under strict regulatory frameworks.”
Citigroup, which is seeking approval to trade Bitcoin futures, is just the latest in a long line of conservative investment institutions to venture into Bitcoin.
Wells Fargo and JPMorgan both recently applied for Bitcoin passive funds. Coinbase recently announced a partnership with one of Japan’s largest traditional banks, Mitsubishi UFJ (MUFG) Financial Group, which will offer its account holders exclusive onboarding on the exchange platform.
In July, the Bank of New York Mellon (BNY Mellon) announced it would support the launch of a new London-based cryptocurrency exchange called Pure Digital, the first major bitcoin trading platform to be backed by a consortium of major banks.
Back then, Jason Vitale, Global Head of Foreign Exchange at BNY Mellon, spoke about the future of Bitcoin at large traditional banks: “Digital assets will only be more embedded in global markets in the years to come, and this collaboration is in line with BNY Mellons broader strategy to develop a digital asset capability for clients across the entire retail lifecycle. “
