One of the largest banks in the US, U.S. Bancorp, has relaunched its corporate bitcoin custody service after more than three years. The decision is driven by the Trump administration’s pro-crypto policies and the growing interest of financial institutions in digital assets.
The program, announced in 2021, will this time serve not only fund managers and private funds but also bitcoin ETFs. NYDIG will act as the sub-custodian for asset custody, while U.S. The bank will be the institution that has direct contact with the customer.
The company’s senior executive, Stephen Philipson, said, “Receiving services from a bank-owned provider offers customers strength, stability and confidence in this developing market.”
The service, which was suspended due to the capital-intensive regulations introduced by the SEC in 2022, became possible again this year with the removal of that guidance.
In the crypto market, spot bitcoin ETFs are particularly attracting great interest.
While these products, approved in January 2024, are growing rapidly, BlackRock’s iShares Bitcoin Trust alone has reached a market capitalization of $80 billion.Although Coinbase currently dominates the custody market, the re-entry of large banks into the sector seems likely to intensify competition.
