BNY Mellon and Citi are enhancing their digital asset custody services as regulatory conditions improve. BNY Mellon, which launched its digital asset custody platform in October 2022, now manages Bitcoin and Ethereum for select clients and has trialed tokenized deposits and payments. Meanwhile, Citi plans to introduce institutional-grade crypto custody services by 2026, contributing to a 46% rise in institutional Bitcoin holdings and $5.95 billion in global crypto ETF inflows in 2025. Citi is also exploring tokenized asset issuance, stablecoin infrastructure, and cross-border payments through its Token Services. This expansion reflects a broader trend among traditional banks to integrate custody, settlement, and tokenization, positioning themselves within the evolving financial infrastructure landscape.