U.S. Bank Resumes Cryptocurrency Custody for Institutional Clients

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U.S. Bank has officially resumed cryptocurrency custody services for institutional clients, partnering with NYDIG for secure bitcoin storage. This restart occurs amid increased regulatory clarity and market demand for bitcoin investment vehicles, including ETFs.

The relaunch of U.S. Bank’s crypto custody services is significant due to its potential influence on institutional investment in digital assets, particularly bitcoin ETFs. The move also suggests regulatory frameworks now favor such financial instruments.

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U.S. Bank’s decision to restart crypto custody services for institutional clients is driven by new regulatory clarity and high demand for digital assets. Initially launched in 2021, the service was paused in 2022 due to regulatory uncertainties.

U.S. Bank partners with NYDIG to provide secure bitcoin storage solutions. The renewed service includes supporting bitcoin ETFs, reflecting the institution’s alignment with financial giants like BlackRock and Citigroup. As Stephen Philipson, Vice Chair, U.S. Bank Wealth, Corporate, Commercial and Institutional Banking said:

“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. 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.”

The partnership reinforces efforts to meet institutional security standards, pivotal in assuring large fund managers. Bitcoin’s recent surge, showing increased daily volumes and market cap, suggests institutional interest is impacting market dynamics.

The U.S. regulatory landscape favoring crypto-asset safekeeping by banks aligns with Bitcoin’s market momentum. Regulatory bodies emphasize risk management, prompting U.S. Bank to renew its digital asset strategy amidst increasing market demand.

The move signals a potential broader impact on digital assets, including future support for other cryptocurrencies like ETH. Enhanced custody infrastructure could catalyze wider adoption and institutional investment in crypto markets.