Following Goldman Sachs, Citigroup is preparing to offer Bitcoin futures trading services, with regulatory work in progress.

An anonymous source revealed that the U.S. banking giant Citigroup is undergoing preliminary regulatory procedures to offer Bitcoin futures trading services on the Chicago Mercantile Exchange (CME). If approved, Citigroup will become the second international bank to offer Bitcoin futures trading after Goldman Sachs.

Offering CME Bitcoin Futures

According to an anonymous source quoted by CoinDesk, Citigroup bank has seen an increase in demand for Bitcoin trading among its clients recently. A spokesperson for Citigroup Group stated:

Citigroup's clients are becoming increasingly interested in the crypto space, and we are monitoring developments in this area, including regulatory frameworks, regulatory expectations, and other factors, giving careful consideration to all aspects. Currently, we are only considering offering futures and other products to institutional clients, as these products operate within robust regulatory frameworks.

Another anonymous source familiar with the cryptocurrency derivatives market also noted:

Citigroup is actively hiring personnel to join its cryptocurrency team based in London, and they may eventually be approved to trade CME Bitcoin futures first, followed by Bitcoin ETNs.

Citigroup announced the establishment of a digital asset department at the end of June, dedicated to the business of cryptocurrencies and blockchain. Itay Tuchman, the global head of foreign exchange at the time, previously stated, "Trading, custody, and financing services are all under consideration."

Goldman Sachs Partners with Galaxy Digital

In mid-June, Goldman Sachs also partnered with Galaxy Digital to provide Bitcoin futures trading services, with Galaxy Digital acting as a market maker to assist Goldman Sachs' institutional clients in investing in Bitcoin.

Therefore, Citigroup is very likely to become the second international bank, after Goldman Sachs, to offer Bitcoin futures trading services.

When traditional financial institutions venture into the crypto space, the process, in addition to attracting attention, also gives a sense of great effort. Damien Vanderwilt, head of global markets at Galaxy Digital, explained:

"Goldman Sachs entered the crypto space through Galaxy Digital because highly regulated banks are unable to directly handle Bitcoin businesses."