US Bancorp reopens Bitcoin custody services for fund managers

Financial services giant US Bancorp said Wednesday it is reviving its crypto custody services for institutional investment managers.

“Further expanding our capabilities unlocks new opportunities to deliver innovative solutions to those we serve,” said Dominic Venturo, senior executive vice president and chief digital officer at US Bank, in a statement. “US Bank will continue to drive progress and shape the future of what matters for our clients in digital finance.”

In partnership with NYDIG, the program targets providing custody services for Bitcoin. The bank also expands its platform to support Bitcoin exchange-traded funds to meet growing demand from fund managers.

“NYDIG is honored to partner with US Bank as its primary provider for Bitcoin custody services,” said NYDIG CEO Tejas Shah in a statement. “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, delivered with the safety and security expected by regulated financial institutions.”

The Minneapolis-based commercial bank, the fifth-largest in the US, first unveiled the crypto custody program in 2021 but decided to keep it on hold over regulatory concerns, specifically after the US Securities and Exchange Commission issued accounting guidance, Staff Accounting Bulletin No. 121 (SAB 121), which made it capital-intensive for banks to hold crypto assets like Bitcoin for their clients.

The guidance was rescinded earlier this year after the federal securities regulator introduced SAB 122, easing accounting challenges for banks and financial institutions and promoting the expansion of crypto custody services.

Following the SEC’s landmark move, US Bancorp CEO Gunjan Kedia said at the Morgan Stanley US Financials Conference in June that the bank’s crypto custody service is returning as regulatory clarity improves.

She also noted at the time that while custody focuses on crypto investment, the current trend is shifting toward payments and stablecoins, which the bank is actively exploring through pilots and potential partnerships.

With the relaunch, US Bank is now among a small but expanding group of traditional financial institutions competing with crypto-native firms in the custody space. Bank of New York Mellon and Fidelity have launched similar services, joining companies such as Coinbase, BitGo, and Anchorage Digital.

The bank will consider offering custody of other crypto assets if they meet the bank’s standards, a spokesperson told Bloomberg.