U.S. Bank, one of the largest financial institutions in the United States, has relaunched its Bitcoin custody services for institutional clients, amid rising demand across Wall Street.
The move comes as other top US banks dive into further integration of the rapidly evolving digital asset market, with the Minneapolis-based bank aiming to capitalize on the demand.
U.S. Bank restarts Bitcoin custody
According to an announcement on Wednesday, U.S. Bank is reviving its crypto business venture with the custody services that it originally introduced in 2021.
Fresh offering of the Bitcoin custody solution also integrates the growing spot exchange-traded funds ecosystem, with the former allowing an early access program tailored for institutional investment managers overseeing registered or private funds.
“We’re proud that we were one of the first banks to offer cryptocurrency custody for fund and institutional custody clients back in 2021, and we’re excited to resume the service this year,” said Stephen Philipson, vice chair of Wealth, Corporate, Commercial and Institutional Banking at U.S. Bank.
Partnership with NYDIG
As part of its offering, U.S. Bank is eyeing safekeeping of Bitcoin, with custody a critical aspect of the digital assets’ traction in mainstream finance.
The bank has partnered with NYDIG, a New York-based bitcoin financial services firm with a trust charter, which will act as the sub-custodian for the digital assets.
This collaboration strengthens U.S. Bank’s ability to provide secure and reliable custody solutions.
The relaunched service comes with enhanced capabilities, including custody for bitcoin exchange-traded funds (ETFs), a significant addition to its previous offerings.
“Following greater regulatory clarity, we’ve expanded our offering to include bitcoin ETFs, which allows us to provide full-service solutions for managers seeking custody and administration services,” Philipson added.
Regulatory shifts
U.S. Bank’s expansion of its solution comes as banks benefit from a regulatory shift from the Federal Reserve, the US Securities and Exchange Commission and Federal Deposit Insurance Corporation among others.
Regulators have issued guidelines for banks’ engagement in the crypto assets market, including in allowing customers to buy and sell crypto.
“U.S. Bank has been at the forefront of exploring how digital assets can serve our clients. Further expanding our capabilities unlocks new opportunities to deliver innovative solutions to those we serve. U.S. Bank will continue to drive progress and shape the future of what matters for our clients in digital finance,” Dominic Venturo, senior executive vice president and chief digital officer at U.S. Bank, noted.
Citigroup is among the banks eyeing the crypto market with a digital asset custody product. Others like JP Morgan have announced plans to allow clients buy and hold BTC and crypto.
SEC, the Commodity Futures Trading Commission and Fed are all looking to tap into regulatory frameworks to support innovation and adoption across blockchain and crypto. The US recently passed the GENIUS Act, a key stablecoin legislation.
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