Bitcoin News Today: Bitcoin Custody Gets Institutional Boost as U.S. Bank Re-Enters the Ring

U.S. Bank has resumed offering bitcoin custody services for institutional investment managers, marking a return to the market after regulatory uncertainties led to a pause in 2022. The service, initially launched in 2021, is now being reactivated as an early access program through the bank’s Global Fund Services division. The offering is intended for institutional clients seeking secure custodial solutions for bitcoin and includes support for bitcoin ETFs. NYDIG, a financial technology firm specializing in bitcoin-related infrastructure, will act as the sub-custodian for the program [1].

The decision to resume the service follows a period of regulatory clarity, including the repeal of SEC Staff Accounting Bulletin (SAB) No. 121 in early 2025, which had previously constrained banks from offering cryptocurrency custody. Stephen Philipson, vice chair of U.S. Bank Wealth, Corporate, Commercial, and Institutional Banking, emphasized the bank’s pioneering role in the space, noting that they were among the first to offer such services in 2021 and are now expanding to include full-service solutions for managers seeking custody and administration [2].

NYDIG’s role in the partnership is critical, as it provides institutional-grade security and infrastructure for bitcoin custody. Tejas Shah, CEO of NYDIG, highlighted the collaboration as a bridge between traditional finance and the digital economy. The firm’s infrastructure supports bitcoin’s proof-of-work security and high-performance computing, enabling secure and efficient custody services for institutional clients [3].

U.S. Bank’s institutional banking division manages over $11.7 trillion in assets under custody and administration as of June 30, 2025. The expanded offerings include not only bitcoin custody but also services for ETFs, fund administration, and wealth management. Dominic Venturo, senior executive vice president and chief digital officer at U.S. Bank, stated that the expansion of digital asset capabilities positions the bank to deliver innovative solutions and drive progress in digital finance [4].

The broader market for bitcoin custody has seen significant interest, particularly with the recent approval and popularity of spot bitcoin ETFs. These products have drawn large inflows, with the largest such ETF now holding over $80 billion in assets. While Coinbase currently dominates the custody market for these products, the entry of U.S. Bank and others into the space could diversify options for institutional clients. The move reflects a growing trend among traditional financial institutions to adapt to the evolving digital asset landscape [5].

The resumption of bitcoin custody services also coincides with broader regulatory shifts in the U.S., including the Federal Reserve’s decision to end its supervisory program for crypto activities. This shift, along with the pro-crypto stance of the current administration, has encouraged banks to reconsider their involvement in digital assets. U.S. Bank’s return to the market is seen as a strategic step in leveraging regulatory clarity and meeting increasing client demand for digital asset solutions [6].

Source: [1] U.S. Bank Resumes Bitcoin Cryptocurrency Custody Services for Institutional Investment Managers (https://www.barchart.com/story/news/34565000/u-s-bank-resumes-bitcoin-cryptocurrency-custody-services-for-institutional-investment-managers) [2] U.S. Bank Resumes Bitcoin Custody Services, Adds (https://www.bitget.com/news/detail/12560604948524) [3] U.S. Bank Resumes Bitcoin Cryptocurrency Custody Services (https://ir.usbank.com/news-events/news/news-details/2025/U-S--Bank-Resumes-Bitcoin-Cryptocurrency-Custody-Services-for-Institutional-Investment-Managers/default.aspx) [4] U.S. Bank Resumes Bitcoin (BTC) Custody Services, Adds (https://www.coindesk.com/business/2025/09/03/u-s-bank-resumes-bitcoin-custody-services-adds-support-for-etfs) [5] U.S. Bank Resumes Bitcoin Custody Services For (https://bitcoinmagazine.com/news/u-s-bank-resumes-bitcoin-custody-services-for-institutional-investors-adding-support-for-bitcoin-etfs) [6] US Bank Restarts Bitcoin Custody Service After Years-Long (https://finance.yahoo.com/news/us-bank-restarts-bitcoin-custody-175101105.html) [7] US Bancorp revives institutional bitcoin custody service (https://finance.yahoo.com/news/us-bancorp-revives-institutional-bitcoin-120523648.html)