US Bancorp has returned to the crypto market by reviving its digital asset custody services for institutional investment managers.
US Bancorp’s return follows a regulatory change under President Donald Trump’s administration, which overturned an SEC rule that had required banks to hold extra capital for crypto activities, Bloomberg reported Wednesday. Head of US Bank’s institutional division, Stephen Philipson, said:
We had the playbook, and it’s sort of opening it up and executing it again.
He mentioned that the bank plans to grow the service as demand increases and is also exploring ways digital assets could play a role in wealth management and consumer payments.
The fifth-largest US commercial bank, US Bancorp, first introduced its crypto custody service in 2021 through a partnership with fintech firm NYDIG. The service was later paused due to SEC guidance, but with that rule now reversed, the bank is resuming its efforts.
US Bancorp to launch Bitcoin custody services
The firm will start by offering Bitcoin custody services to registered investment funds and Bitcoin ETF providers. The bank said it may later expand to other cryptocurrencies that pass its risk and compliance checks.
Firms like Coinbase, BitGo, and Anchorage Digital have largely dominated the crypto custody market. However, new federal guidance, particularly from the Office of the Comptroller of the Currency, is opening the door for banks to play a significant role.
In 2022, BNY Mellon introduced a digital custody platform to securely store Bitcoin and Ethereum for select institutional clients.
This made America’s oldest bank the first major U.S. institution to offer custody services for digital assets. At the same time, more traditional financial institutions are getting into crypto custody.
More banks plan crypto custody
In July, Germany’s largest lender, Deutsche Bank, said it will allow clients to store cryptocurrencies such as Bitcoin. The bank plans to launch the digital asset custody service in 2026 through a partnership with the technology arm of Austrian crypto exchange Bitpanda.
In August, reports said Citigroup was exploring plans to offer crypto custody and payment services. The move comes as the market grows under Trump-era regulatory approvals and pro-industry laws.
