U.S. Bancorp has announced the revival of its Bitcoin custody services for institutional clients after a three-year hiatus.
Revival of U.S. Bancorp's Bitcoin Custody
U.S. Bancorp is reviving its Bitcoin custody services after a three-year pause, focusing on institutional clients and Bitcoin ETFs. The bank will act as the primary intermediary, while NYDIG will serve as a sub-custodian. This decision has been made possible by the repeal of an SEC rule that required banks to hold capital against crypto assets.
Strategic Approach to Bitcoin ETFs
Stephen Philipson, head of wealth management at U.S. Bancorp, stated that this strategic shift aims to provide institutional comfort in a volatile market. Having a bank-owned custodian offers clients reassurance, especially concerning products tied to Bitcoin prices. Additionally, other major banks, like Citigroup, are also exploring custody services for digital assets.
Bitcoin ETF Statistics
Since their approval in January 2024, Bitcoin ETFs have seen tremendous growth, with inflows totaling $54.57 billion, controlling about 6.45% of the entire circulating Bitcoin supply. The rapid growth of these funds has pressured the custody landscape, previously dominated by a few crypto-native firms.
The revival of U.S. Bancorp's Bitcoin custody services highlights the growing interest of major financial institutions in digital assets, which may lead to significant changes in the custody industry.
