U.S. Bank has announced the relaunch of its cryptocurrency custody offerings aimed at institutional investment managers, expanding its services to now include bitcoin exchange-traded funds (ETFs). Initially rolled out in 2021, the program was paused in 2022 but is now available on an early access basis through the bank’s Global Fund Services division.
The custody operations will be backed by NYDIG, which will serve as the sub-custodian for bitcoin. This move comes in light of renewed regulatory clarity in the cryptocurrency space, according to Stephen Philipson, vice chair of U.S. Bank Wealth, Corporate, Commercial and Institutional Banking. He expressed pride in being one of the first banks to offer cryptocurrency custody services to fund and institutional clients back in 2021, indicating that the bank is enthusiastic about resuming these services this year.
Tejas Shah, CEO of NYDIG, described the partnership as an opportunity to provide institutional-grade safeguards for access to bitcoin. He emphasized the importance of bridging the gap between traditional finance and the evolving modern economy.
As of June 30, U.S. Bank reported having over $11.7 trillion in assets under custody and administration. Its extensive range of services includes ETFs, fund custody, fund administration, corporate trust, and wealth management, positioning the bank as a significant player in the financial landscape as it ventures further into the realm of cryptocurrency.
