US Bancorp has reentered the crypto space by restarting its digital asset management service targeted at institutional investment managers.
A report from Bloomberg on Wednesday shows that re-entering the US Bancorp follows changes in regulations under President Donald Trump’s current administration.
“We had a playbook, and it’s like opening it and running it again,” said Stephen Phillipson, head of facility interiors at the US Bank. He said the banks are planning to expand their services as demand increases and are investigating how digital assets fit into other areas such as wealth management and consumer payments.
The Minneapolis-based bank, the US’s fifth-largest commercial bank, first launched its custody service in 2021 in collaboration with Fintech company Nydig before suspending for SEC guidance. With the rules being revoked, US Bancorp is making a new push.
Related: U.S. federal agencies outline key risks for banks seeking custody of crypto
US Bancorp provides Bitcoin custody for funds
US Bancorp will initially provide custody services to Bitcoin (BTC), starting with a registered investment fund and a Bitcoin ETF provider. The bank said it could expand to include other cryptocurrencies that meet internal risk and compliance standards.
Crypto Custody Service Space is led by Crypto-Native companies such as Coinbase, Bitgo and Anchorage Digital. However, changes in federal guidance, particularly from the office of the Secretary of Currency, are now giving banks more room for operation.
In 2022, BNY Melon launched a digital custody platform to protect the holdings of selected customers of Bitcoin and Ether (ETH) and made America’s oldest bank the country the first large bank to provide digital assets storage.
Related: Binance Taps Spain’s BBVA offers secure crypto custody rights Post-Ftx:ft
More banks push crypto custody
Meanwhile, more and more traditional financial institutions are moving to crypto custody.
In July, Deutsche Bank, Germany’s largest bank, announced plans to allow clients to store cryptocurrencies, including Bitcoin, next year. The bank is expected to launch digital asset management services in 2026, in collaboration with the technology unit of Austria-based Bitpanda Crypto Exchange.
In August, Citigroup was reported to be considering plans to provide cryptocurrency custody and payment services aimed at leveraging markets strengthened by Trump-era regulatory approvals and industrial industry laws.
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