U.S. Bank has resumed cryptocurrency custody services for institutional investment managers, reopening an offering the bank first launched in 2021 and paused in 2022.
The reinstated program, available on an early-access basis through U.S. Bank’s Global Fund Services division, expands to support institutional exposure to bitcoin exchange-traded funds (ETFs). Custody operations will be backed by NYDIG, which the bank named as its sub-custodian for bitcoin.
Bank leadership cited renewed regulatory clarity as the reason for the relaunch. “We’re proud that we were one of the first banks to offer cryptocurrency custody… and we’re excited to resume the service this year,” said Stephen Philipson, vice chair of U.S. Bank Wealth, Corporate, Commercial and Institutional Banking.
NYDIG CEO Tejas Shah framed the tie-up as a way to bring institutional-grade safeguards to bitcoin access, saying the partnership helps “bridge the gap between traditional finance and the modern economy.”
U.S. Bank provides a broad suite of services — fund custody, fund administration, corporate trust and wealth management — and reported over $11.7 trillion in assets under custody and administration as of June 30.
Why it matters: The move signals growing institutional infrastructure for digital assets and may make it easier for fund managers to custody ETF allocations through a regulated bank platform. That said, custody arrangements do not eliminate market, regulatory or counterparty risk; institutional clients should still conduct due diligence on custody, insurance and operational controls.
Source: Business Wire. Read the original coverage for full details.