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5h ago

U.S. Bancorp Relaunches Bitcoin Custody for Institutions With ETF Support

Regulatory rollbacks removed capital hurdles to a NYDIG-backed relaunch targeting ETF issuers.

A representation of the virtual cryptocurrency Bitcoin is seen in this picture illustration taken October 19, 2021. REUTERS/Edgar Su/File Photo
US Bancorp reopens Bitcoin custody services for fund managers
Us bank powers back into bitcoin custody with $11.7t institutional strength
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Overview

  • The bank revived a program first introduced in 2021 that was paused in 2022 after SEC accounting guidance made crypto custody uneconomic for lenders.
  • The restart follows the 2025 rescission of SEC Staff Accounting Bulletin 121, with additional regulatory easing cited by executives as paving the way.
  • The offering is available on an early-access basis through U.S. Bank’s Global Fund Services, with NYDIG acting as sub-custodian while the bank serves clients.
  • Coverage includes direct bitcoin safekeeping and support for spot bitcoin ETFs for institutional investment managers with registered or private funds.
  • The launch is limited to bitcoin, with potential expansion to other assets under evaluation based on risk, compliance standards and client demand as banks like BNY Mellon and Fidelity advance similar services and Citigroup explores options.