TLDR
- U.S. Bank resumes crypto custody services, now offering Bitcoin ETFs via NYDIG partnership.
- U.S. Bank relaunches Bitcoin custody after regulatory clarity and growing demand.
- NYDIG partners with U.S. Bank to provide sub-custody services for Bitcoin ETFs.
- The resumption of custody services expands U.S. Bank’s digital asset offerings.
U.S. Bank has resumed its cryptocurrency custody services for institutional clients, adding Bitcoin ETFs to its offering. The bank has partnered with NYDIG to provide secure custody solutions for Bitcoin assets and expand its digital asset services.
Resuming Bitcoin Custody Services
U.S. Bank has officially resumed its cryptocurrency custody services for institutional investment managers. This move marks the return of a service that was initially launched in 2021 and paused in 2022 due to regulatory uncertainty. The reintroduced program is available to Global Fund Services clients on an early access basis and aims to provide secure storage for Bitcoin assets.
The custody services are supported by NYDIG, a Bitcoin financial services firm, which will act as the sub-custodian for the program. U.S. Bank’s decision to restart the program follows greater regulatory clarity surrounding digital assets, which has encouraged more institutions to engage with crypto offerings.
Stephen Philipson, vice chair of U.S. Bank Wealth, Corporate, Commercial, and Institutional Banking, expressed excitement about resuming the service, stating, “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.”
Expanding Services to Include Bitcoin ETFs
In addition to providing Bitcoin custody directly, U.S. Bank has expanded its service to include Bitcoin exchange-traded funds (ETFs). This expansion is aimed at meeting the growing demand from institutional investors for regulated crypto investment products.
The bank’s partnership with NYDIG allows for enhanced security and custodial support for Bitcoin ETFs, addressing the needs of asset managers seeking safe custody solutions. The inclusion of Bitcoin ETFs adds a layer of flexibility to U.S. Bank’s offerings, providing full-service solutions to clients in the digital asset space.
Tejas Shah, CEO of NYDIG, emphasized the significance of the partnership, noting, “Together, we can bridge the gap between traditional finance and the modern economy by facilitating access for Global Fund Services clients to bitcoin as sound money.”
U.S. Bank’s Digital Asset Strategy
The resumption of Bitcoin custody services is part of U.S. Bank’s broader strategy to expand its digital asset capabilities for institutional investors. As of June 30, U.S. Bank manages over $11.7 trillion in assets under custody and administration, making it one of the largest financial institutions in the world.
The bank’s focus on digital assets reflects the growing importance of crypto in the institutional financial sector. By providing secure custody for digital assets, U.S. Bank aims to solidify its position as a leader in offering crypto solutions for institutional investors, alongside traditional financial services like fund and asset management.
Dominic Venturo, U.S. Bank’s senior executive vice president and chief digital officer, noted the bank’s commitment to advancing digital finance: “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.”
