US Bank Launches Crypto Custody Services for Fund Managers
- US Bank is launching its own crypto custody service for fund managers amid growing interest.
- The service is only offered in the United States and the Cayman Islands. Fintech company NYDIG will act as custodian.
- The announcement comes at a tense time for digital assets as regulators grapple with how to oversee the space.
US Bank, the fifth-largest retail bank in the United States, is launching its own cryptocurrency custody service for fund managers amid growing pressure for traditional financial services to keep pace with the rapid growth of the digital asset space.
The bank, in a announcement Tuesday said institutional investment managers with private funds in the United States or the Cayman Islands can use the bitcoin custodial solution with fintech firm NYDIG acting as custodian. Other coins will also be considered soon, the bank said.
A cryptocurrency custody service is usually offered by a third party and typically used by large investors. US Bank said it is providing the service now as institutional clients step up their plans to offer cryptocurrencies.
US Bank joins other major banks in expanding cryptocurrency-related services. In July, JPMorgan Chase gave all of its wealth management clients access to crypto funds. A month later, Citigroup announced that it was considering trading bitcoin futures, following the lead of Goldman Sachs in May.
The announcement from US Bank, founded during the Civil War in 1863, comes at a tense time for digital assets as regulators around the world, including the US Securities and Exchange Commission, grapple with how to oversee the ‘space.
Yet the industry as a whole, reaching $2.1 trillion, has grown rapidly in recent years, despite wild price swings and crackdowns. Bank of America analysts began covering digital assets on Monday, saying the space was simply “too big to ignore.”