- Citigroup has filed to offer CME Bitcoin futures trading to clients.
- The banking group moved to CME Bitcoin futures following the recent improvement in the price of Bitcoin.
American investment banking company Citigroup has filed to begin trading Chicago Mercantile Exchange (CME) Bitcoin futures. The matter was revealed by a source within the bank who requested anonymity. According to the source, Citigroup is waiting for regulatory approval before going on with the trading option.
Citigroup to offer CME Bitcoin futures trading
Reportedly, Citibank has been dealing with an upsurge in demand for Bitcoin exposures among its clients. The demand intensified after Bitcoin’s recent increase when it reached $50,000. A Citigroup spokesperson said the company is observing the increasing interest in the crypto space among its clients. Also, the spokesperson referred to the controversies surrounding regulatory frameworks regarding crypto activities.
Given the many questions around regulatory frameworks, supervisory expectations, and other factors, we are being very thoughtful about our approach. We are presently considering products such as futures for some of our institutional clients, as these operate under strong regulatory frameworks.
As a result, the banking giant decided to move into trading Bitcoin futures contracts on the CME. If the US regulators approve Citibank’s CME Bitcoin futures trading, the company will become the second major bank to offer such service to its clients. Apart from Citibank, the leading global investment banking company Goldman Sachs also offers Bitcoin futures trading to its consumers.
Separately, another source revealed that Citibank is currently recruiting to add more hands to its crypto-focused team in the UK. According to the job advert Citigroup published, the company is in need of “talented technologists” such as quantitative developers.
One of the sources commented that Citigroup would first have to get permission to begin the CME Bitcoin futures trading. The person added that the team may further get approval for Bitcoin exchange-traded notes (ETNs).
Bitcoin futures exchanges increase
At the beginning of the year, CME became the biggest Bitcoin futures exchange due to a rise in institutional interest. Ahead of Citigroup, more banking giants have taken steps towards Bitcoin exposure for their clients. Last week, Wells Fargo and JPMorgan filed for passive Bitcoin funds for their wealthy consumers. Similarly, Coinbase has partnered with one of the largest traditional Japanese banks Mitsubishi UFJ (MUFG). The collaboration between the exchange and the bank means MUFG’s clients will have exclusive access to the exchange platform.
Amid the ongoing rapid development of crypto-related services globally, the Bank of New York Mellon (BNY Mellon) also declared its support for Pure Digital last month. Pure Digital is a new crypto exchange based in London. BNY Mellon joined the consortium of banking giants supporting the launch of the crypto exchange. While declaring its support for Pure Digital, BNY Mellon’s global head of foreign exchange, Jason Vitale, said:
Digital assets are only going to become more embedded in global markets in the years ahead and this collaboration accords with BNY Mellon’s wider strategy to develop a digital asset capability for clients across the entire trade life cycle.