US Bank to Offer Cryptocurrency Custody and Administer NYDIG’s Bitcoin ETF
Reports indicate that the US bank will offer custody of cryptocurrencies like bitcoin and potentially administer a bitcoin ETF.
The adoption of Bitcoin among banks in the United States has been steadily growing. Now the latest financial institution in the country poised to continue this trend is US Bancorp, the parent company of US Bank, which appears poised to expand its services to include cryptocurrency custody and administer one of the first traded funds. the country’s bitcoin stock exchange (ETF). .
A recent report by Biz News Post reported that US Bancorp, the country’s fifth largest bank, will introduce a cryptocurrency custodian product with an unnamed sub-custodian. This follows a 2020 clarification from the Office of the Comptroller of the Currency that these services could be provided by national banks.
The US bank would also serve as administrator for a potential bitcoin ETF offered by NYDIG, pending regulatory approval of this offer.
According to the report, the bank says its decision was prompted by the growing call from its customers to expose themselves to the crypto industry. The bank noted that “institutional investors such as pension funds and insurance companies (…) see cryptocurrencies as an asset class they would like to invest in.”
US Bank Global Fund Services chief strategy officer Christine Waldron said there has been a shift in the desire of institutional investors to gain exposure to cryptocurrencies like bitcoin.
“They’ve always seen it bubbling to the surface on the retail investor side,” she said in the report. “It really helped institutional investors see cryptocurrency as a viable asset class.”
This is yet another sign that mainstream financial institutions are feeling the need to meet customer demand for bitcoin services. Recently, reports have revealed that JPMorgan Chase & Co. will offer bitcoin fund, Morgan Stanley will offer bitcoin exposure, and Goldman Sachs will provide bitcoin investment vehicles.
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