October 5, 2021

U.S. Bank announces launch of Bitcoin custody service

U.S. Bank announces launch of Bitcoin custody service

U.S. commercial bank U.S. Bank, the fifth-largest U.S. bank by assets, plans to offer a cryptocurrency custodial service to customers. This was reported by CNBC.

The initiative is aimed at institutional private fund managers in the US and the Cayman Islands. They will be able to store the private keys of bitcoin, Bitcoin Cash and Litecoin wallets in the bank. Support for Ethereum and other cryptocurrencies will be implemented at a later date.

The service is provided in cooperation with NYDIG.

U.S. Bank expects to significantly expand the service if the bitcoin-ETF is approved in the US.

Our clients are starting to seriously consider cryptocurrencies as an asset class for diversification, the bank said

U.S. Bank will verify the origin of cryptocurrencies in line with standard identification and anti-money laundering procedures before connecting customers to the service.

U.S. Bank has noted increased investor interest in bitcoin.

Many agree that not all cryptocurrencies will survive. But this asset class and its underlying technology has potential, so it is prudent for us to support it, the financial institution said

Recall that in February 2021, Bank of New York Mellon announced the launch of custody services for bitcoin and other cryptocurrencies.

In June, State Street announced a new unit focused on digital assets and the decentralised finance sector.

In early September, American Vast Bank allowed customers to trade cryptocurrencies from FDIC-insured accounts.

Jack Evans

About the author

I became a crypto asset owner in 2014, when the industry was in its infancy. Before that, I was working in the classic US and European stock markets. Since then, I have gained extensive experience in both cryptocurrency investing and day trading. I am happy to share with readers my experience with crypto exchanges, DeFi and NFT instruments. 

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