U.S. Bancorp, the fifth-largest commercial bank in the United States, has relaunched its institutional Bitcoin custody service after a three-year pause. This decision was influenced by clearer regulations from Washington, including the SEC rescinding a restrictive rule and the OCC no longer requiring prior approval for custody services. The bank’s move is also a response to the massive growth in spot Bitcoin ETFs.
The program, a partnership with fintech firm NYDIG, is initially for registered investment funds and ETF issuers, but U.S. Bancorp is exploring other crypto applications in wealth management and payments.
This relaunch places the bank among a growing number of traditional financial institutions, like BNY Mellon and Deutsche Bank, that are expanding into the digital asset space.
The article highlights a shift in the regulatory and political landscape, with the Trump administration promoting pro-crypto policies, such as the GENIUS Act for stablecoins and “Project Crypto” led by SEC Chairman Paul Atkins. Despite ongoing tensions between banks and crypto firms, the resumptions of custody services and other similar moves signal a new phase of mainstream crypto integration.
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