Citigroup Executive Steps Down To Explore Crypto

Citigroup executive Shobhit Maini has resigned from his post as the global head of digital assets in the bank’s markets division. Maini, a Citigroup veteran of more than 14 years, has given notice to the company to take up an “entrepreneurial opportunity in the digital asset space.”

Citigroup Executive Steps Down

Citigroup executive Shobhit Maini has decided to resign from his role as the global head of digital assets in the bank’s markets unit. 

As reported in the memo from Lee Smallwood, the head of markets innovation and investments at Citigroup, Maini is stepping down to pursue entrepreneurial projects in the cryptocurrency sector.

After the departure of Maini, Deepak Mehra, the international lead for markets strategic investments at Citigroup, will take over the leadership of the digital assets team. This appointment suggests a smooth transition and Citi’s continuing interest in developing and adopting blockchain technology.

Citigroup’s Blockchain Initiatives

During his tenure at the bank, the Citigroup executive has been piloting the tokenization of private equity funds using the blockchain. In February, Citigroup said it had conducted a trial proving that a blockchain system could tokenise a private equity fund. This test was a part of a larger strategic plan that the bank had embarked upon to transform its operations and expand its presence in the digital assets ecosystem.

The test involved working with Wellington Management and WisdomTree, thus underlining the bank’s efforts to incorporate blockchain into the traditional financial industry. 

This move under the Citigroup executive is consistent with the bank’s objective to move into digital assets, which the company demonstrated when it introduced a service in September that converts customers’ deposits into tokens for cross-border transactions.

Challenges and Controversies

While the bank has been pushing forward with its blockchain initiatives, the bank has faced challenges, including accusations of money laundering activities. A June report cited that drug traffickers allegedly used Citibank ATMs to launder money, exploiting perceived weaknesses in the bank’s oversight.

According to the report, two individuals from California, who are believed to be associated with the Sinaloa drug cartel, made several cash deposits into Citibank ATMs. These transactions raised questions on the dynamics of the bank’s anti-money laundering policies.

The bank, nonetheless, argued that it has adequate measures to monitor and disclose any suspicious transactions and it always offers its full assistance to the authorities in their investigations.