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2w ago

U.S. Bancorp Restarts Bitcoin Custody, Adding Support for Spot ETFs

A rollback of SEC accounting guidance removed capital hurdles that had sidelined banks’ crypto safekeeping.

A representation of the virtual cryptocurrency Bitcoin is seen in this picture illustration taken October 19, 2021. REUTERS/Edgar Su/File Photo
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US Bancorp reopens Bitcoin custody services for fund managers

Overview

  • The service targets institutional investment managers with registered or private funds and is rolling out on an early-access basis through U.S. Bank’s Global Fund Services.
  • NYDIG will act as sub-custodian for the underlying bitcoin while U.S. Bank remains the client-facing intermediary.
  • The bank paused the program in 2022 after SAB 121 and relaunched after the bulletin was rescinded earlier this year, enabling support for spot bitcoin ETFs.
  • As a custodian with about $11.7 trillion in assets under custody and administration, U.S. Bank says it will evaluate adding other assets if they meet its standards.
  • The move aligns with a broader return of traditional banks to digital-asset custody, while Coinbase continues to hold most spot bitcoin ETF mandates.