BusinessU.S. Bank

U.S. Bank To Offer Cryptocurrency Custody, Administer NYDIG’s Bitcoin ETF

Reports indicate that U.S. Bank will offer custody of cryptocurrencies like bitcoin and potentially administer a bitcoin ETF.

Bitcoin adoption among banks in the United States has been growing steadily. Now, the latest financial institution in the country poised to continue this trend is U.S. Bancorp, the parent of U.S. Bank, which appears set to expand its services to include cryptocurrency custody and administering one of the country’s first bitcoin exchange-traded funds (ETFs).

A recent report from Biz News Post indicated that U.S. Bancorp, the fifth-largest bank in the country, will be introducing a cryptocurrency custody product along with an unnamed sub-custodian. This follows a 2020 clarification from the Office of the Comptroller of the Currency that such services could be provided by national banks.

U.S. Bank would also serve as the administrator for a potential bitcoin ETF to be offered by NYDIG, pending the regulatory approval of that offering.

According to the report, the bank says its decision was motivated by the growing call of its customers for exposure to the crypto industry. The bank noted that “institutional investors such as pension funds and insurance companies … see cryptocurrencies as an asset class in which they would like to invest.”

The chief strategy officer for the U.S. Bank Global Fund Services, Christine Waldron, said that there has been a change in the desire of institutional investors to gain exposure to cryptocurrencies like bitcoin.

“They’ve always seen it bubbling around the surface on the retail investor side,” she said per the report. “This really allowed for institutional investors to take a look at cryptocurrency as a viable asset class.”

This is yet another sign that legacy financial institutions feel the need to meet customer demand for bitcoin services. Recently, reports have surfaced that JPMorgan Chase & Co. will be offering a bitcoin fund, Morgan Stanley will be offering bitcoin exposure and Goldman Sachs will provide bitcoin investment vehicles.

Article First Published on Bitcoin Magazine

Related posts
BusinessGrantsTen31

Ten31 Announces Grants For Open Sats, Bitcoin Q+A

Investment firm Ten31 has announced it will be supporting Open Sats and Bitcoin Q+A with grant funds sourced from its management fees. Ten31, an investment firm focused on Bitcoin-native companies, has announced its first Bitcoin developer and community grants, which…
Bitcoin miningBusinessMarathonregulation

Marathon Mines Bitcoin Block That’s Verified As Compliant With U.S. Regulations

Marathon has mined a Bitcoin block deemed fully compliant with U.S. regulations, effectively censoring transactions in the process. Marathon Digital Holdings, one of the largest enterprise Bitcoin self-mining companies in North America, has successfully mined its first “clean” block. In…
BusinessCasinoCryptocurrenciesGeminiLas Vegas

Crypto on the casino floor? Las Vegas resort partners with Gemini

Some Las Vegas casinos have only been allowed to return to full capacity this week. A Las Vegas casino-resort which aims to open for business next month has just partnered with major cryptocurrency exchange Gemini. In an announcement today, Resorts…