US Bancorp is relaunching its Bitcoin (BTC) custody services for institutional investment managers following recent regulatory developments in the US.
US Bank’s crypto custody service was originally announced in 2021 in partnership with fintech company NYDIG. However, the program was paused in early 2022 after the US Securities and Exchange Commission (SEC) released Staff Accounting Bulletin No. 121 (SAB 121), which required custodians to hold capital on the balance sheet for these activities.
Stephen Philipson, head of wealth, corporate, commercial, and institutional banking at US Bank, affirmed that “following greater regulatory clarity, we’ve expanded our offering to include bitcoin ETFs, which allows us to provide full-service solutions for managers seeking custody and administration services.”
According to the announcement, the bank will now offer its Bitcoin custody services as an early access program to Global Fund Services clients, intended for institutional investment managers “with registered or private funds who seek a secure safekeeping solution for bitcoin.”
The bank is reportedly exploring how the use cases of crypto and stablecoins may fit into its wealth, payments, and consumer banking requirements. Additionally, the financial institution will also consider offering custody services for additional cryptocurrencies if they meet the bank’s standards.
US regulators have also announced new efforts to continue the Trump administration’s efforts to make America “the crypto capital of the world.” On Tuesday, the SEC and the Commodity Futures Trading Commission (CFTC) issued a joint statement clarifying their views on spot crypto trading in the US.
The regulatory agencies noted that they are ready to engage with market participants, support consideration by their respective agencies, and address related questions.
Meanwhile, SEC Chairman Paul Atkins affirmed that “market participants should have the freedom to choose where they trade spot crypto assets,” adding that “the SEC is committed to working with the CFTC to ensure that our regulatory frameworks support innovation and competition in these rapidly evolving markets.”
